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Alexus [3.1K]
3 years ago
5

Chemtec is undertaking a project that will require an upfront investment today in net working capital, and plant and equipment (

i.e., capital expenditures) of \$100$100 million and \$200$200 million, respectively. If there are no revenues or expenses expected until next year, what is the project's free cash flow today in millions of dollars?
Business
1 answer:
almond37 [142]3 years ago
3 0

Answer:

-$300 million

Explanation:

Change in net working capital (CNWC) = $100 million

Capital Expenditures (CE) = $200 million

Assuming no depreciation expenses, the free cash flow (FCF) is given by:

FCF = EBIT*(1-tax) - CNEC - CE

Since no revenues are expected until the next year, EBIT = 0.

FCF = - \$100 -\$200\\FCF = - \$300\ million

The project's free cash flow today is -$300 million.

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_____ is the authority granted by a domestic firm to an overseas firm for the rights to produce and market its product or to use
brilliants [131]

Answer:

Foreign License

Explanation:

According to my research on different licensing agreements, I can say that based on the information provided within the question the term being described in the question is called a Foreign License. Like mentioned in the question this type of licensing is an arrangement between two companies to manufacture, distribute and sell the first companies product in countries outside the country of Origin.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
4 years ago
Jim has a house payment of $2,000 per month of which $1,700 is deductible interest and real estate taxes with the remaining $300
Vaselesa [24]

Answer:

$1,490

Explanation:

Interest expense is tax deductible in the computation of after tax cost. Therefore, Jim will enjoy tax-induced saving on the $1,700 interest portion of his monthly house payment.

Tax saving on the interest payment is computed as follows:

$1,700 * 30% tax rate = $510.

Therefore, after-tax cost of Jim's house payment

= total monthly payment, less tax saving on interest

= $2,000 - $510

= $1,490.

4 0
4 years ago
Prior to the launch of its financial service, Mint made extensive use of ______ which helped search engines view this business a
Dafna1 [17]

Answer:

Blogs

Explanation:

Blogs are information websites that provides relevant information for a target group in a diary style arranged according to date.

The most recent posts appear first in the website.

Mint has used blogs to provide relevant information to users.

Search engines analyse the contents of websites to determine of they are relevant sources of information.

Mint's blogs have help search engines identify the company as a relevant source of personal financial topics

8 0
3 years ago
McLaughlin borrowed her roommate's car just to take her mother to the hospital. While delivering her mother at the hospital, McL
PolarNik [594]

Answer:

Ideally, the drunk driver who hit them while he was driving on the wrong lane is liable for the damages and not McLaughlin since he was sober and civil.

Explanation:

Liability for damages resulting from car accident usually falls on a negligent driver an din this case, McLaughlin is not the negligent one.

However, the situation is tricky here since he is not the owner of the car.

The majority of car accidents are caused by driver negligence, poor road conditions, or a problem or defect with one of the automobiles involved.

If his friend has a car insurance, that will cover for the damages as well.

And if the drunk driver finds a way to escape with a strong case, and in the absence of a car insurance, McLaughlin might be obligated to pay for the damages since the car was borrowed.

4 0
3 years ago
Robust Inc. has the following information related to an item in its ending inventory. Product 66 has a cost of $812, a replaceme
Radda [10]

Answer:

$775

Explanation:

In inventory valuation , inventory are valued at the lower of cost to replace an item of inventory and the net realizable value.

The net realizable value is the proceed earned from the disposal of an inventory less the cost related to the disposal.

In the scenario described in the question , The replacement cost for product 66 is $775 while the net realizable value is $800. Therefore , the final inventory valuation will be the lower of $775 and $800 which is $775

3 0
3 years ago
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