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A project currently generates sales of $10 million, variable costs equal to 40% of sales, and fixed costs of $2.3 million. The firm's tax rate
A project currently generates sales of $10 million, variable costs equal to 40% of sales, and fixed costs of $2.3 million. The firm's tax rate is 20%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10 million to $11.5 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit increased Cash flow decreased by $1 by $ million. million. b. What are the effects on the after-tax profits and cash flow, if variable costs increase to 50% of sales. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit (Click to select) by $ | Cash flow (Click to select) by $ million. million. A project currently generates sales of $10 million, variable costs equal to 40% of sales, and fixed costs of $2.3 million. The firm's tax rate is 20%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10 million to $11.5 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit increased Cash flow decreased by $1 by $ million. million. b. What are the effects on the after-tax profits and cash flow, if variable costs increase to 50% of sales. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit (Click to select) by $ | Cash flow (Click to select) by $ million. million
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