0
1
2
3
4
Total
initial investment
($457,000)
Operating Cash Flows
Unit
sales
250,000
250,000...
0
1
2
3
4
Total
initial investment
($457,000)
Operating Cash Flows
Unit
sales
250,000
250,000
250,000
250,000
Price per
unit
$2.50
$2.50
$2.50
$2.50
Total
revenues
$ 625,000
$ 625,000
$ 625,000
$ 625,000
Total
costs
$ 236,400
$ 186,000
$ 312,000
$ 345,600
Operating
income
$ 388,600
$ 439,000
$ 313,000
$ 279,400
Taxes on
operating income
136,010
153,650
109,550
97,790
After-tax
operating income
$ 252,590
$ 285,350
$ 203,450
$ 181,610
Operating
cash...
Telesis Corp is considering a project that has the
following cash flows:
Year
Cash Flow
0...
Telesis Corp is considering a project that has the
following cash flows:
Year
Cash Flow
0
-$1,000
1
400
2
300
3
500
4
400
The company’s weighted average cost of capital (WACC) is
10%. What are the project’s payback period (Payback), internal rate
of return (IRR), net present value (NPV), and profitability index
(PI)?
A.
Payback = 3.5, IRR = 10.22%, NPV = $1260, PI=1.26
B.
Payback = 2.6, IRR = 21.22%, NPV = $349, PI=1.35
C.
Payback =...
Gardial Fisheries is considering two mutually exclusive
investments. The projects' expected net cash flows are as...
Gardial Fisheries is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash Flows
Time Project A Project B
0 ($375) ($575)
1 ($300) $190
2 ($200) $190
3 ($100) $190
4 $600 $190
5 $600 $190
6 $926 $190
7 ($200) $0
a. If each project's cost of capital is 12%, which project
should be selected? If the cost of capital is 18%, what project is
the proper choice?
@ 12% cost...
Net Cash Flow, Net Operating Profits after Tax (NOPAT),
Operating Cash Flow Please complete the table...
Net Cash Flow, Net Operating Profits after Tax (NOPAT),
Operating Cash Flow Please complete the table by computing the net
cash flow, net operating profits after tax and operating cash flow
for Walmart Inc.
Here is a link to the financials of the company: Yahoo
Finanicals; Walmart
https://finance.yahoo.com/quote/WMT/financials?p=WMT
Thank you!
Formula
2017
2016
Net Cash Flow
Net
Income- Depreciation & Amortization
Net Operating Profits After Tax (NOPAT)
EBIT*(1-T)
T=
Operating Cash Flow
NOPAT+Depreciation
Calculate Net Operating Profit After Tax (NOPAT), Operating Cash
Flow (OCF) and Free Cash Flow (FCF)...
Calculate Net Operating Profit After Tax (NOPAT), Operating Cash
Flow (OCF) and Free Cash Flow (FCF) for Unlimited Masks Inc., with
the following financial information:
- EBIT $20.2mm - Depreciation $3.6mm - Interest Expense $4.0mm -
Capital Expenditures $2.5mm - Change in working capital $4.0mm -
Tax rate 21%
(A)
A company is considering a major expansion of its product line. The
initial outlay would...
(A)
A company is considering a major expansion of its product line. The
initial outlay would be $10,100,000 and the project would generate
cash flows of $1,290,000 per year for 20 years. The appropriate
discount rate is 10%. (a) calculate the NPV (b) calculate the PI
(c) calculate the IRR (d) should this project be excepted?
(B) The same company is considering a new system for its lot.
The system will provide annual labor savings and reduced waste
totaling $175,000...
(a) Develop
proforma Project Income Statement Using Excel Spreadsheet
(b) Compute Net Project Cash
flows, NPV,...
(a) Develop
proforma Project Income Statement Using Excel Spreadsheet
(b) Compute Net Project Cash
flows, NPV, IRR and PayBack Period
(c) Develop Problem-Solving
and Critical Thinking Skills
1) Life Period of the
Equipment = 4 years
8) Sales for first year (1)
$ 200,000
2) New equipment cost
$ (200,000)
9) Sales increase per year
5%
3) Equipment ship &
install cost
$ (35,000)
10) Operating cost:
$ (120,000)
4) Related start up cost
$ (5,000)
(60 Percent of...
Q1.) What is the payback period for the following set of cash
flows?
Year Cashflow
0...
Q1.) What is the payback period for the following set of cash
flows?
Year Cashflow
0 -$3900
1 1500
2 1400
3 1800
4 1800
Q2.)
An investment project costs $14,400 and has annual cash flows of
$4,200 for six years. What is the discounted payback period if the
discount rate is 5 percent?
Q3.)A project has projected cash flows of –$28,800, $10,400,
$13,100, $15,000, $12,100 and –$8,600 for years 0 to 5,
respectively. Should this project be accepted based...
1. Learning Objectives
(a) Develop proforma Project Income
Statement Using Excel Spreadsheet
(b) Compute Net Project Cash
flows, NPV, IRR...
1. Learning Objectives
(a) Develop proforma Project Income
Statement Using Excel Spreadsheet
(b) Compute Net Project Cash
flows, NPV, IRR and PayBack Period
1) Life Period of the Equipment = 4 years
8) Sales for first year (1)
$ 200,000
2) New equipment cost
$ (200,000)
9) Sales increase per year
4%
3) Equipment ship & install cost
$ (25,000)
10) Operating cost:
$ (120,000)
4) Related start up cost
$ (5,000)
(60 Percent of Sales)
-60%
5) Inventory increase
$ 25,000
11) Depreciation (Straight Line)/YR
$ (60,000)
6) Accounts Payable...
1. Learning Objectives
(a) Develop proforma Project Income
Statement Using Excel Spreadsheet
(b) Compute Net Project Cash
flows, NPV, IRR...
1. Learning Objectives
(a) Develop proforma Project Income
Statement Using Excel Spreadsheet
(b) Compute Net Project Cash
flows, NPV, IRR and PayBack Period
1) Life Period of the Equipment = 4 years
8) Sales for first year (1)
$ 200,000
2) New equipment cost
$ (200,000)
9) Sales increase per year
4%
3) Equipment ship & install cost
$ (25,000)
10) Operating cost:
$ (120,000)
4) Related start up cost
$ (5,000)
(60 Percent of Sales)
-60%
5) Inventory increase
$ 25,000
11) Depreciation (Straight Line)/YR
$ (60,000)
6) Accounts Payable...