Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 200.000 125.000 pro-forma income statement sales c

200.000 125.000 Pro-Forma Income Statement Sales CGS Gross Pront Fixed Costs Depreciation EBIT 75.000 12.000...

60.1K

Verified Solution

Question

Accounting

image
image
200.000 125.000 Pro-Forma Income Statement Sales CGS Gross Pront Fixed Costs Depreciation EBIT 75.000 12.000 30.000 33,000 Taxes (34%) Net Income 11,220 $ 21.780 Given the pro forma income statement above, calculate the operating cash flow for this Project. (Record your answer on your scratch paper since you will need to know OCF for the next question.) Use the OCF calculated in previous question, and assume that it is constant for all 3 years of this project. Year 2 3 Operating Cash Flows $ $ Net Spending Capital $ (90.000) 3,500 Change in Net Working Capital $ (20,000) 20,000 Project Cash Flows Calculate the NPV for this project. Would you recommend that the firm proceed with this project if its required rate of return is 9%? (Use the table provided to organize your work)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students