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Ira Lisetskai [31]
3 years ago
14

The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its n

ew proposed service:
Projected sales $20 million
Operating costs (not including depreciation) 8 million
Depreciation 6 million
Interest expense 3 million
The company faces a 40% tax rate. What is the project's operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
$ _______
Business
1 answer:
Dmitrij [34]3 years ago
4 0

Answer:

$9,600,000

Explanation:

The computation of the projected operating cash flow is given below:

= EBIT × (1 - tax rate) + depreciation expense

where

EBIT should be

= $20,000,000 - $8,000,000 - $6,000,000

= $6,000,000

Now the operating cash flow should be

= $6,000,000 × (1 - 0.40) + $6,000,000

= $3,600,000 + $6,000,000

= $9,600,000

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An investor owns a 6% bond issued by ABC Corporation that is callable at 102 ($1,020) next May 1. All of the following statement
Alexxandr [17]

Answer:D) the bond is probably being called by the issuer because interest rates went up

This statement is not true because when interest rates go up the issuer is at an advantage as he had previously borrowed money at a interest rate which is lower than the present interest rate, as interest rates have risen. Also when interest rates rise and the issuer calls the bond he will have to pay higher interest to re borrow money and this is foolish thus the issuer will not call the bond when interest rates rise. The issuer will call the bond when interest rates fall, as the issuer can re issue the bonds and borrow money at lower interest rates.

Explanation:

6 0
3 years ago
CMI International, a composite plastic manufacturer, wants to improve its involvement with the community, so it has established
RideAnS [48]

When CMI International, a composite plastic manufacturer attempt to find and attract qualified applicants from the external labor market for its Community Involvement Office; This process is called "recruitment ".

<h3>What is recruitment?</h3>

The practice of actively seeking out, locating, and employing individuals for a certain post or career is known as recruitment. The entire hiring process, from the first stages to the recruit's integration into the business, is covered by the term of recruitment.

The goal of recruitment is -

  • The purpose of recruitment is to build a large pool of qualified candidates from which to select the best candidate for the position.
  • This strategy attracts sizable groups of people and motivates them to submit applications for open positions at a company.

Types of recruitment are-

  • Direct marketing.
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To know more about hiring process, here

brainly.com/question/18859039

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4 0
2 years ago
If you were to try to associate Project Management with the traditional functions of Supply Chain Management, A. Project Managem
MakcuM [25]

Answer:

B. Project Management encompasses all the functions of Supply Chain: Plan-Buy-Make-Deliver

Explanation:

A project can involve any aspect of logistics, e.g. building a new distribution facility, or installing an automated warehouse, etc. The main difference between project management and supply chain management is the lifespan of the work carried out. A project has a definite lifespan, e.g. a new facility must be built and it should start operating within 2 years. While operations management requires continuous day to day work, e.g. after the new facility is operating, the supply chain manager will be in charge of supply chain operations. It is normal that a supply chain manager is part of the team that handles new projects, but his/her work continues after the project is over.

4 0
3 years ago
You just sold 900 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You
ehidna [41]

Answer:

d. -$4,608

Explanation:

The computation of the total capital gain is shown below:

Total capital gains is

= (End value - Beginning value) × 900 shares

= ($34.08 - $39.20) × 900 shares

= -$4,608

Hence, the  total capital gain on this investment is -$4,608

Therefore the option d is correct

And, the same is to be relevant

5 0
4 years ago
On January 1, 2017, Yeager Company purchased some equipment for $4,700. The estimated life was five years, after which there wou
Salsk061 [2.6K]

Answer:

$575

Explanation:

Straight line method charges a fixed amount of depreciation using the formula :

<em>Depreciation expense = (Cost - Residual Value) ÷ Useful Life</em>

2017

Deprecation expense = $820

2018

Deprecation expense = $820

2019

<u>Calculate depreciable amount :</u>

<em>New depreciable amount = Previous Depreciable Amount - Accumulated depreciation - Increase in Residual amount</em>

                                           = $4,700 - $600 - $1,640 - $100

                                           = $2,300

<u>Determine the New useful life :</u>

Since 2 years have already expired, the new useful life out of the revised 6 years is 4.

<u>Depreciation Expense calculation :</u>

Depreciation Expense = Depreciable Amount ÷ Useful Life

                                      = $2,300 ÷ 4

                                      = $575

Conclusion :

The amount of depreciation expense for the year 2019 is $575

6 0
3 years ago
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