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3 years ago

All else constant how would an increase in annual depreciation affect a project's operating cash flow?

Business

1 answer:

MatroZZZ [7]3 years ago

6 0

Answer:

The answer is 'will increase the project's operating cash flow.

Explanation:

The project's operating cashflow has a direct or positive relationship with the annual depreciation expenses. This means the increase in annual depreciation will increase the project operating cash flow and likewise a decrease in annual depreciation will decrease the project's operating cash flow.

Depreciation is the result of wear/tear on the machine.

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Red Bison Petroleum Producers Group is expected to generate $140,000,000 in net income over the next year. Red Bison Petroleum P

pashok25 [27]

Answer:

Detailed solution is given below:

6 0

4 years ago

A corporation has $7,000,000 in income after paying preferred dividends of $500,000. The company has 1,000,000 shares of common

Finger [1]

Answer:

Price earning ratio= 8 times

Explanation:

Price earning ratio = Price per share /Earnings per share

Price per share = 56, EPS =?

Price per share =56, EPS = Total earnings available to ordinary shareholders/Number of shares

7,000,000/1,000,000= $7 per share

Price earning ratio = 56/7= 8 times

Price earning ratio= 8 times

8 0

3 years ago

Duff Inc. paid a 2.34 dollar dividend today. If the dividend is expected to grow at a constant 1 percent rate and the required r

Akimi4 [234]

Answer:

$24.60

Explanation:

The computation of the price for 4 years from now is shown below:

Price = Dividend ÷(Required rate of return - growth rate)

where,

Dividend is

= Dividend × (1 + growth rate)^number of years

= $2.34 × (1 + 0.01)^5

= $2.46

All the other items would remain the same

So, the price is

= $2.46 ÷ (11% - 1%)

= $24.60

8 0

3 years ago

For most products higher prices

kogti [31]

That’s like the quarantine lol but just a bit higher

3 0

4 years ago

If the market price is $6.30, in the long run, Group of answer choices new firms will enter the market. existing firms will exit

Rufina [12.5K]

Answer:

Option D. Not enough information to answer this question.

Explanation:

There are number of factors the company considers before entering or exiting the market and some of these include Marginal cost or marginal revenue analysis, project analysis which considers the future cost and benefits by continuing the business, Porter five forces factors consideration before entering, Capabilities and resource analysis, etc.

So merely a price doesn't decides that we going to enter the market or we are leaving the market. Their are chances that we can control the cost of that the competitor starts selling the product at cost which will have harmful impact.

So the information provided to answer this question is not enough.

6 0

3 years ago