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Ostrovityanka [42]
3 years ago
5

A proposed new project has projected sales of $195,000, costs of $92,000, and depreciation of $25,200. The tax rate is 25 percen

t. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Operating cash flow
EBIT +Depreciation - Taxes 58,800
Top-down
Tax-shield
Bottom-up
Business
1 answer:
rusak2 [61]3 years ago
5 0

Answer:

EBIT + Depreciation - Tax

= (195000-92000-25200) + 25200 - 19450

= $83,550

Top down OCF = EBIT - (EBIT * Tax) + Depreciation  

Top down OCF = (195000-92000-25200) - ((195000-92000-25200) * 0.25) +25200

Top down OCF = 77800 - 19450 + 25200

Top down OCF = $83,550

Tax shield OCF = (Sales - Exp) (1-tax) + (Dep * tax)  

Tax shield OCF = (195000-92000) (1-0.25) + (25200 * 0.25)  

Tax shield OCF = 77250 + 6300

Tax shield OCF = 83550

Bottom Up OCF = Net Income + Dep

Bottom Up OCF = (77800 * (1-0.25) + 25200

Bottom Up OCF = 83550

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docker41 [41]

Answer:

The current price is $34.40

The price be in three years is $38.70

The price in 15 years is $61.95

Explanation:

In this question, we apply the Gordon model which is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,  

Current year dividend

For one year

= $2.15 × (1 + 4% )

= $2.15 × 1.04

= $2.236

The other items rate would remain the same

Now put these values to the above formula  

So, the value would equal to

= 2.236 ÷ (10.5% - 4%)

= $34.40

The price is three years would be

= $34.40 × (1.04) ^ 3 years

= $34.40 × 1.124864

= $38.70

The price is 15th years would be

= $34.40 × (1.04) ^ 15 years

= $34.40 × 1.8009435055

= $61.95

7 0
3 years ago
A small company needs to set up a security surveillance system to protect its building. which cloud-based technology will the co
Andrew [12]

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A security feature for computer logins is SSO. When computers complete intricate, human-like jobs, that is AI.

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Imagine having shoes that monitor your heart rate and can alert you about potential health issues. These "smart" shoes are real; you don't need to imagine them.

Over the next five years, the Internet of Things will bring about amazing potential. The Internet of Things (IoT) business still has a long way to go in terms of overall security, even while smart things are just that. "Insecurity by design" refers to how many IoT devices released today were developed with minimal regard for privacy and security safeguards.

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4 0
2 years ago
Why has the provider of choice shifted from rail to motor modes? With the shift to motor freight carriers, the amount of traffic
babymother [125]

Answer:

Why has the provider of choice shifted from rail to motor modes?

When companies change their modus operandi, it is usually to minimize cost and maximize profit. This provider of choice therefore has probably determined that motor modes were more cost effective for the services it offers vs using trains and rail modes for transport and has now made the appropriate switch.

With the shift to motor freight carriers, the amount of traffic accidents have sky rocketed.

With the provider of choice now using motor modes as opposed to rail, there is bound to be more vehicles on the road now from motor bikes all the way to trucks and with an increase in the number of vehicles available, there is bound to be an increase in accidents involving vehicles.

6 0
3 years ago
A group formed by people seeking friendship or pursuing common interests that has no official leader or specific organizational
Mice21 [21]

Answer:

C. informal group

Explanation:

An informal group is the one created naturally by employees for their own sake, <em>their formation is voluntary with no official leader and relationships are personal, based on the member's interests.</em> Considering this information the correct answer is C. informal group.

I hope you find this information useful and interesting! Good luck!

5 0
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A _________ allows deposits and withdrawals; may require a minimum balance to keep the account open; earns interest; and may lim
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Regular savings account
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