Question
A project currently generates sales of $10 million, variable costs equal 50% of sales, and fixed costs are $2 million. The firms tax rate is
A project currently generates sales of $10 million, variable costs equal 50% of sales, and fixed costs are $2 million. The firms tax rate is 21%. Assume all sales and expenses are cash items.
What are the effects on cash flow, if sales increase from $10 million to $11 million?
What are the effects on cash flow, if variable costs increase to 65% of sales?
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Structured Finance Leveraged Buyouts Project Finance Asset Finance And Securitization
Authors: Charles-Henri Larreur
1st Edition
1119371104, 978-1119371106
