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Doss [256]
3 years ago
11

Free Cash Flow Catering Corp. reported free cash flows for 2008 of $8.08 million and investment in operating capital of $2.08 mi

llion. Catering listed $1.08 million in depreciation expense and $2.08 million in taxes on its 2008 income statement. What was Catering's 2008 EBIT
Business
1 answer:
Ksivusya [100]3 years ago
5 0

Answer: $11.16 million.

Explanation:

Free Cash Flow Catering Corp Earnings Before Interest and Tax (EBIT) can be calculated by the following formula,

EBIT = Operating Cashflow + Taxes - Depreciation.

Operating Cashflow = Free Cashflow + Investment in Operating Capital

= 8.08 million + 2.08 million

= $10.16 million

EBIT = 10.16 million + 2.08 million - 1.08 million

EBIT = $11.16 million.

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Answer:

D

Explanation:

they ban mandatory union memberships

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Despite ongoing debates about the appropriateness of macroeconomic policies, many macroeconomists have reached a modern consensu
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3 years ago
Denmark is a good example of a nation-state because:.
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Denmark is a good example of a nation-state because nearly all Danes speak D.anish and live in Denmark.

<h3>What is nation-state?</h3>

Basically, a nation-state refers to sovereignty or state that is ruled in the name of a community of citizens that identify themselves as a nation.

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Therefore, the Option A is correct.

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2 years ago
A manufacturer of printed circuit boards is considering purchasing a new surface mount technology component placement system. Tw
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Answer:

R is a better alternative because it has a higher NPV than Q.

Explanation:

Machines                            Q                                  R

First costs                   $380,000                  $395,000

Net annual revenue $150,000 in year 1,      $152,500

                                  increasing by $500

                                   per year thereafter  

Salvage value               $4,000                             0

Life, years                           8                                 10

MACRS 7 year recovery:

year                    %                         Q                           R

1                      14.29%               54,302                  56,445.50

2                    24.49%               93,062                  96,735.50    

3                     17.49%               66,462                  69,085.50

4                     12.49%               47,462                  49,335.50

5                      8.93%               33,934                   35,273.50

6                      8.92%               33,896                  35,234.00

7                      8.93%               33,934                   35,273.50

8                      4.46%                16,948                    17,617.00

net cash flow

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1                                     116,505.70                   118,880.93

2                                    130,396.70                  132,982.43    

3                                    121,411.70                     123,304.93

4                                    115,086.70                   116,392.43

5                                    110,676.90                    111,470.73

6                                    110,930.10                    111,456.90

7                                    111,326.90                     111,470.73

8                                    108,306.80                 105,290.95

9                                                                            99,125

10                                                                           99,125

Using a financial calculator, I calculated the NPV using a 12% discount rate:

  • Q's NPV = $200,636.15
  • R's NPV = $259,221.01

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