Answer:
net present value NPV = $79800
so correct option is D) $79,800
Explanation:
solution
we knw that Net Present value = PV of cash inflow - PV of cash outflow ............1
so here PV of cash outflow = $300000
and Net sales = $200000
expenses = $80000
Depreciation = 
Depreciation = $50000
so Net income before taxes = Net sales - Depreciation - expenses
Net income before taxes = $200000 - $80000 - $50000
Net income before taxes = $70000
and Tax expenses @ 40% = $28000
so
Net income = Net income before taxes - Tax expenses
Net income = $70000 - $28000
Net income = $42000
and
Depreciation = $50000
Net cash inflow = Net income + Depreciation
Net cash inflow = $42000 + $50000
Net cash inflow = $92000
and
PVIFA @ 10% 5 years = $3.7908
so
PV of cash inflow = $348755
PV of salvage value = $50000 ×0.6209
PV of salvage value = $31045
and
so here Total PV of total cash inflow = $379800
and
net present value NPV = Total PV of total cash inflow - PV of cash outflow
net present value NPV = $379800 - $300000
net present value NPV = $79800
so correct option is D) $79,800
Answer:
A.) $81,100,000
B.) $64,000,000
C.) $17,100,000
Explanation:
EBIT = $90 million
Tax rate = 21%
Depreciation = $10 million
gross fixed assets increased by $56 million
current assets increased by $44 million
current liabilities increased by $36 million
A.) Operating Cash flow for 2021
EBIT + Depreciation - (EBIT × Tax rate)
$90, 000,000 + 10,000,000 - (90,000,000×0.21)
100,000,000 - (18,900,000) = $81,100,000
B.) Investment in Operating capital for 2021:
Increase in gross fixed asset + (increase in current asset - increase in liability)
$56,000,000 + ( $44,000,000-$36,000,000)
= $56,000,000 + $8,000,000
= $64,000,000
C.) Free cash flow
Operating Cash flow - investment in operating
$81,100,100 - $64,000,000 = $17,100,000
Accomplished, Achieved, Active in, Awarded, Assisted, Broadened, Built, Chaired, Championed, Completed, Delegated, Distinguished, Enacted, Enhanced, Facilitated, Formulated, Graduated, Granted, Handled, Helped, Implemented, Improved, Increased, Initiated, Joined, Kept, Led, Licensed, Managed, Mastered, Navigated, Netted, Obtained, Outlined, Performed, Placed, Qualified, Received, Recorded, Secured, Served, Taught, Trained, Understudied, Undertook, Verified, Volunteered, Widened, Worked.
Hope these help!!!
Answer:
D. $ 367.500
Explanation:
We have to first compute the total direct labor cost. This is done by multiplying the estimated direct labor hours with the hourly rate.
Total Direct Labour costs $ 17.50 per hour * 15,000 hours = $ 262,500
Estimated manufacturing overhead per the data in the question is 140 % of Direct labor cost,
Estimated manufacturing overhead is $ 262,500 * 140 % = $ 367,500
