#### Question Details

(solution) 1.) ABC Company has a proposed project that will generate sales

1.) ABC Company has a proposed project that will generate sales of 464 units annually at a selling price of $176 each. The fixed costs are $5,753 and the variable costs per unit are $94. The project requires $29,415 of equipment that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. That is, depreciation each year is $29,415/4. That tax rate is 29 percent. What is the operating cash flow?

2.) ABC Corporation is considering an expansion project. The necessary equipment could be purchased for $20,895 and shipping and installation costs are another $723. The project will also require an initial $4,374 investment in net working capital. The company's tax rate is 40%. What is the project's initial investment outlay?

3.) A project has an initial requirement of $210,739 for new equipment and $9,766 for net working capital. The installation costs to get the new equipment in working condition are 2,237. The fixed assets will be departed to a zero book value over the 4-year life of the project and have an estimated salvage value of $141,243. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $107,970 and the cost of the capital is 18%. What is the projects NPV if the tax rate is 35%?

4.) ABC has a proposed project which will generate sales of 135 units at a selling price of $265 each. The fixed costs are $14,209 and the variable costs per unit are $67. The project requires $194,948 of machinery which will be depreciated on a straight-line basis over the 5-year life of the project. That is, depreciation each year is $194,948/5. The tax rate is 28%. What is the operating cash flow?

Sales

Less Expense

Variable Expense

Fixed Cost

Depreciation

PBT

TAX

PAT

ADD depreciation

operating cash flow 81664

43616

5753

7354

24941

7233

17708

7354

25062 Purchase Cost

shipping and...

**Solution details:**

Answered

QUALITY

Approved

ANSWER RATING

This question was answered on: * Sep 13, 2020 *

* * Solution~00021147666432.docx (25.37 KB)

##### Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .

#### About this Question

STATUSAnswered

QUALITYApproved

DATE ANSWEREDSep 13, 2020

EXPERTTutor

ANSWER RATING

#### GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

#### NEW ASSIGNMENT HELP?

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions.
New orders are original solutions *and precise to your writing instruction requirements. Place a New Order using the button below.*

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.