Part A Bennett Co. has a potential new project that is expected to generate annual revenues of...

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Finance

Part A
Bennett Co. has a potential new project that is expected togenerate annual revenues of $260,300, with variable costs of$143,200, and fixed costs of $60,700. To finance the new project,the company will need to issue new debt that will have an annualinterest expense of $23,500. The annual depreciation is $24,800 andthe tax rate is 35 percent. What is the annual operating cashflow?
Part B
Bruno's Lunch Counter is expanding and expects operating cashflows of $31,700 a year for 6 years as a result. This expansionrequires $110,300 in new fixed assets. These assets will beworthless at the end of the project. In addition, the projectrequires $7,800 of net working capital throughout the life of theproject. What is the net present value of this expansion project ata required rate of return of 11 percent?
Part C
A project with a life of 6 years is expected to provide annualsales of $300,000 and costs of $205,000. The project will requirean investment in equipment of $550,000, which will be depreciatedon a straight-line method over the life of the project. You feelthat both sales and costs are accurate to +/-15 percent. The taxrate is 40 percent. What is the annual operating cash flow for thebest-case scenario?
Part D
A project with a life of 8 years is expected to provide annualsales of $440,000 and costs of $317,000. The project will requirean investment in equipment of $760,000, which will be depreciatedon a straight-line method over the life of the project. You feelthat both sales and costs are accurate to +/-15 percent. The taxrate is 35 percent. What is the annual operating cash flow for thebest-case scenario?

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Part ABennett Co. has a potential new project that is expected togenerate annual revenues of $260,300, with variable costs of$143,200, and fixed costs of $60,700. To finance the new project,the company will need to issue new debt that will have an annualinterest expense of $23,500. The annual depreciation is $24,800 andthe tax rate is 35 percent. What is the annual operating cashflow?Part BBruno's Lunch Counter is expanding and expects operating cashflows of $31,700 a year for 6 years as a result. This expansionrequires $110,300 in new fixed assets. These assets will beworthless at the end of the project. In addition, the projectrequires $7,800 of net working capital throughout the life of theproject. What is the net present value of this expansion project ata required rate of return of 11 percent?Part CA project with a life of 6 years is expected to provide annualsales of $300,000 and costs of $205,000. The project will requirean investment in equipment of $550,000, which will be depreciatedon a straight-line method over the life of the project. You feelthat both sales and costs are accurate to +/-15 percent. The taxrate is 40 percent. What is the annual operating cash flow for thebest-case scenario?Part DA project with a life of 8 years is expected to provide annualsales of $440,000 and costs of $317,000. The project will requirean investment in equipment of $760,000, which will be depreciatedon a straight-line method over the life of the project. You feelthat both sales and costs are accurate to +/-15 percent. The taxrate is 35 percent. What is the annual operating cash flow for thebest-case scenario?