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gthif13211
19.11.2019 •
Business
Anew project is expected to generate $600,000 in revenues, $200,000 in cash operating expenses, and depreciation expense of $100,000 in each year of its 10-year life. the corporation's tax rate is 40%. the project will require an increase in net working capital of $75,000 in year 0 and a decrease in net working capital of $75,000 in year ten. what is the operating cash flow from the project in year one?
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Ответ:
Explanation:
OCF(yr1) = [(Revenue -Operating expenses-depreciation)*(1-tax)] +depreciation
Note: depreciation is added back because it is not an actual CASH OUTFLOW.
Revenues = 600,000
Operating expenses = 200,000
Depreciation per year = 100,000
Tax = 40% or 0.40 as a decimal
OCF = [(600,000 - 200,000 -100,000)](1-0.40) + 100,000
OCF = (300,000*0.60) +100,000
OCF = 180,000+ 100,000
OCF(Yr1) = $280,000
Ответ:
In fact, there is a trade-off between saving and spending money. This becomes an individual choice for most people because the temptation to consume goods and services is high and for a person to decide to invest he or she needs to have an incentive as an attractive return possibility. In my case, this is not so difficult because I am a financially controlled person. Every month I save a percentage of my income and use the rest to meet my consumption needs. That way I can balance the usefulness of my money. One part is invested for my future while the other part I use in the present.