Business, 19.10.2021 02:10 lulprettyb

The Fleming Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 23 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 37,000 Sales revenue $ 19,000 $ 19,500 $ 20,000 $ 17,000 Operating costs 4,000 4,100 4,200 3,400 Depreciation 9,250 9,250 9,250 9,250 Net working capital spending 430 480 530 430 a. Compute the incremental net income of the investment for each year.
b. Compute the incremental cash flows of the investment for each year.
c. Suppose the appropriate discount rate is 11 percent. What is the NPV of the project?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:40

On coral island in 2012, the labor force is 12,000, the unemployment rate is 10 percent, and the labor force participation rate is 60 percent. during 2013, 200 unemployed people found jobs and the working-age population increased by 1,000. the total number of people in the labor force did not change. the working-age population at the end of 2013 was the unemployment rate at the end of 2013 was round up to the second decimal. the labor force participation rate at the end of 2013 was round up to the second decimal.

Answers: 1

Answer

Business, 22.06.2019 17:30

Kevin and jenny, who are both working full-time, have three children all under the age of ten. the two youngest children, who are three and five years old, attended eastside pre-school for a total cost of $3,000. ervin, who is nine, attended big kid daycare after school at a cost of $2,000. jenny has earned income of $15,000 and kevin earns $14,000. what amount of childcare expenses should be used to determine the child and dependent care credit?

Answers: 3

Answer

Business, 22.06.2019 20:20

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.

Answers: 3

Answer

Business, 22.06.2019 23:00

The era of venture capitalists doling out large sums of money to startups is a. just beginning b. on the rise c. over d. fading

Answers: 2

Answer

You know the right answer?

The Fleming Manufacturing Company is considering a new investment. Financial projections for the inv...

Questions