1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
podryga [215]
4 years ago
5

Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing facility in

an area recently damaged by a hurricane. THSI will lease space in this facility to various agencies and groups providing relief services to the area. THSI estimates that this project will initially cost $5 million to setup and will generate $20 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $12 million during this year and depreciation expense will be another $3 million. THSI will require no working capital for this investment. THSI's marginal tax rate is 35%. Ignoring the original investment of $5 million, what is THSI's free cash flow for the first and only year of operation
Business
1 answer:
Tema [17]4 years ago
7 0

Answer:

$6.25 million

Explanation:

Calculation for free cash flow

Using this formula

Free Cash Flow = (Revenues - Expenses-Depreciation) × (1–Tax rate) + Depreciation

Let plug in the formula

Free Cash Flow= ($20 million - $12 million - $3 million ) × (1–0.35) + $3 million

Free Cash Flow=($5 million*0.65)+$3 million

Free Cash Flow=$3.25million+$3 million

Free Cash Flow=$6.25 million

Therefore free cash flow for the first and only year of operation wiill be $6.25 million

You might be interested in
(mango electronics inc.) mango electronics inc. is a fortune 500 company that develops and markets innovative consumer electroni
Sonja [21]
1. 53.33% U = p/(a*m) = 16/(10*3) =16/30 = 53.33% 


2. Ca=10 months / 10months = 1, Cp = 32 months / 16 months = 2 Tq= (16/3)*[(0.5333)^(sqrt(2*(3+1))-¬‐1)/(1-¬‐(0.5333))]*(1^2 + 2^2)/2= 9.0 months
T= Tq + p = Tq + 16 months = 25 months


3. p = p / a = 16 / 10 = 1.6 
7 0
3 years ago
What aspect of a website makes it easy to understand?
enot [183]

Keeping the website design simple and not too complex will increase the understandability of the website design.

<u>Explanation:</u>

There are certain factors that should be kept in mind while designing a website. Those factors are Keep the design of the website simple. Cramming too much into the design of each page creates confusion. Make a good impression.

The owner of the website should Provide intuitive navigation. Be consistent Choose your colors carefully to make the design of the website look attractive. Make your website responsive Develop for multiple browsers. Check your website for errors

3 0
3 years ago
How are wages for a particular job determined?
Sauron [17]

Answer:

by the equilibrium between supply and demand for workers

Explanation:

Wages are the amount to pay workers for a particular job when employed. Therefore, determining the wages for a particular job is mostly dependent "on the equilibrium between supply and demand for workers, " and sometimes location.

This is because the higher the number of workers available, the lesser the employers would be willing to increase the wage level of employees given the fact that they can easily find another employee. However, where there is a lesser number of employees for a particular job, the employers would be willing to increase the employees' wages to entice them.

6 0
3 years ago
A pricing strategy in which a manufacturer pays for the shipping cost of its merchandise to the wholesaler is called ____ pricin
klasskru [66]

Answer:

FOB destination

Explanation:

FOB destination pricing. FOB destination is an acronym for Free on Board destination. This means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyers receiving dock , the sellers pays and bears the freight charges and it also owns the goods while they are in transit.

3 0
3 years ago
Now, assume that Addison’s savings institution modifies the terms of her account and agrees to pay 5.8% in compound interest on
love history [14]

Answer:

Addison will have $ 1,661 in her account in nine years.

Explanation:

This problem requires us to calculate value of our investment of $ 1000 dollars after nine years. The interest on the investment is 5.8% compounded annually.

This problem can be solved by using simple compounding formula given below.

Future Value = Present Value (1+interest rate%)^-period

Future Value = 1,000 (1+5.8)^9

Future = $ 1,661

5 0
3 years ago
Other questions:
  • What two task does a public affairs officer do?
    10·1 answer
  • Holton Company makes three products in a single facility. Data concerning these products follow:
    6·1 answer
  • A code of conduct ________. select one:
    9·1 answer
  • Businesses hold short-term securities for which of the following reasons
    12·1 answer
  • __________either are owned and run by entrepreneurs or are divisions of larger retail corporations. They buy at less than regula
    15·1 answer
  • What effect does inflation have on the prices of goods and services?
    14·2 answers
  • Individual policies are generally stand-alone policies, but may be written with other types of policies as a(n): a. Endorsement
    5·1 answer
  • Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a mach
    10·1 answer
  • MJJM Inc. has four equal shareholders who are unrelated. Each shareholder owns 300 shares of the common stock of MJJM Inc. repre
    10·1 answer
  • Which examples demonstrate common Governance workplaces and employers? Check all that apply.
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!