Question: Use the following assumptions from a project to solve Problems 31 thru 34 The project is expected to produce annual Revenue of $5,000,000 in Year
Use the following assumptions from a project to solve Problems 31 thru 34 The project is expected to produce annual Revenue of $5,000,000 in Year 1 and $8,000,000 in Years 2-5. The cost of Labor is expected to be $2,000,000 in Year 1 and $2,500,000 in Years 2-5. The cost of Materials is expected to be $1,000,000 in Year 1 and $2,000,000 in Years 2-5. Fixed Overhead is expected to be $1,000,000 in Year 1 and $1,500,000 in Years 2-5. Miscellaneous expenses are expected to be $500,000 in all five years. The total Depreciation & Amortization expense in Years 1-3 is $2,000,000 and in Years 4-5 is $1,500,000 The total NCLV (on all fixed assets and working capital) in Year 5 is expected to be $5,000,000 The corporate tax rate on Taxable Earnings (EBT) is 30% Enter all answers for 31 thru 34 as a whole number, ROUND to the nearest whole dollar (i.e., DO NOT use cents), and DO NOT use the S sign. Commas are optional (but you are advised to use them). 31. What is the Net Cash from Operations in Year 1? (2 points) 32. What is the Net Cash from Operations in Year 2? (2 points) 33. What is the Net Cash from Operations in Year 4? (2 points) 34. What is the TOTAL Net Cash from Operations plus NCLV in Year 5? (2 points)
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