A firm has projected the following financials for a possible project: YEAR Sales Cost of Goods...
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A firm has projected the following financials for a possible project: YEAR Sales Cost of Goods S&A Depreciation Investment in NWC Investment in Gross PPE 0 1,059.00 115,573.00 What is the cash flow for year 1? 1 120,386.00 120,386.00 120,386.00 120,386.00 120,386.00 68,436.00 68,436.00 68,436.00 68,436.00 68,436.00 30,000.00 30,000.00 30,000.00 23,114.60 23,114.60 23,114.60 30,000.00 23,114.60 2 518.00 30,000.00 23,114.60 518.00 518.00 518.00 518.00 The firm has a capital structure of 38.00% debt and 62.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 12.00%. The tax rate facing the firm is 35.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) A firm has projected the following financials for a possible project: YEAR Sales Cost of Goods S&A Depreciation Investment in NWC Investment in Gross PPE 0 1,059.00 115,573.00 What is the cash flow for year 1? 1 120,386.00 120,386.00 120,386.00 120,386.00 120,386.00 68,436.00 68,436.00 68,436.00 68,436.00 68,436.00 30,000.00 30,000.00 30,000.00 23,114.60 23,114.60 23,114.60 30,000.00 23,114.60 2 518.00 30,000.00 23,114.60 518.00 518.00 518.00 518.00 The firm has a capital structure of 38.00% debt and 62.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 12.00%. The tax rate facing the firm is 35.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year)
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To calculate the cash flow for year 1 we need to determine the net cash inflow or outflow from the p... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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