subject
Business, 08.11.2019 03:31 benoitjaylewe

Colsen communications is trying to estimate the first-year cash flow (at year 1) for a proposed project. the financial staff has collected the following information on the project: 12-2 sales revenues operating costs (excluding depreciation) depreciation interest expense $15 million 10.5 million 3 million 3 million the company has a 40% tax rate, and its wacc is 11%. a. what is the project's cash flow for the first year (t = 1)? b. if this project would cannibalize other projects by $1.5 million of cash flow before taxes per year, how would this change your answer to part a? c. ignore part b. if the tax rate dropped to 30%, how would that change your answer to part a?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 17:10
All else being equal, which is true about a firm with high operating leverage relative to a firm with low operating leverage? select one: a. a higher percentage of the high operating leverage firm's costs are fixed. b. the high operating leverage firm is exposed to less risk. c. the debt payments limit the high operating leverage firm's opportunities to turn a big profit. d. the high operating leverage firm has more debt.
Answers: 2
question
Business, 21.06.2019 20:30
Abond is issued for less than its face value. which statement most likely would explain why? a. the bond's contract rate is higher than the market rate at the time of the issue. b. the bond's contract rate is the same as the market rate at the time of the issue. c. the bond's contract rate is lower than the market rate at the time of the issue. d. the bond isn't secured by specific assets of the corporation.
Answers: 1
question
Business, 22.06.2019 12:50
Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
Answers: 2
question
Business, 23.06.2019 00:00
The undress company produces a dress that women use to quickly and easily change in public. the company is just over a year old and has been successful through a kickstarter campaign. the undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the kickstarter family, what question must it answer?
Answers: 1
You know the right answer?
Colsen communications is trying to estimate the first-year cash flow (at year 1) for a proposed proj...
Questions
question
Mathematics, 18.11.2020 18:10
question
Mathematics, 18.11.2020 18:10
question
Chemistry, 18.11.2020 18:10
question
Mathematics, 18.11.2020 18:10
question
English, 18.11.2020 18:10
question
Mathematics, 18.11.2020 18:10