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Wittaler [7]
3 years ago
9

A capital investment project is expected to generate an incremental increase in revenues of $15 million and an incremental incre

ase in operating costs of $10 million during its first year. Year 1 incremental depreciation expense is $5 million. The firm’s interest expense will increase by $2 million during year 1. If the firm’s marginal tax rate is 35% what is the year 1 incremental after-tax cash flow for capital budgeting purposes?
Business
1 answer:
Zinaida [17]3 years ago
6 0

Answer:

$5,000,000

Explanation:

Particulars                                                      Amount

incremental increase in revenues                $15,000,000

- Incremental increase in operating costs    $10,000,000

- Incremental depreciation expense             <u>$5,000,000</u>

Earnings before interest and taxes               $0

Tax ($0 *35%)                                                  <u>$0                    </u>

Operating Income                                           $0

+ Incremental depreciation expense             <u>$5,000,000</u>

After Tax Cash flow for capital budgeting   <u>$5,000,000 </u>

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Explanation:

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Which statement defines equilibrium in a graph showing demand and supply curves?
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A. It is the point where the demand and supply curves intersect.

Explanation:

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Angelina_Jolie [31]

Answer:

$84.86

Explanation:

I'm guessing they want you to find the standard deviation.

It would be easy to do this in a statistical calculator, but I suspect they want you to do it by hand.

Here are the steps for a manual calculation.

1. Count the elements in the data set

N = 8

2 Calculate the sum of the data set

\displaystyle \sum_{i = 1}^{8}x_{i} = 2011

3. Calculate the mean

\mu_{x} = \dfrac{2011}{8}  = 251.375

4. Calculate the standard deviation

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(b) Square the differences

(c) Add the squares  of the differences

(d) Divide the sum by the number of terms

(e)Take the square root of the result

We can set up a table to organize the calculations.

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