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How do you figure out project free cash flows? AutoSave OFF AQES5 Book2 Home Insert Draw Page Layout Formulas Data Review View Tell me Le
How do you figure out project free cash flows?
AutoSave OFF AQES5 Book2 Home Insert Draw Page Layout Formulas Data Review View Tell me Le Share Comments Calibri (Body) v 12 VA A = = - v Accounting ab Insert LEF X LC FH Delete Paste BI U v A E == = $ v % 9 Conditional Format Formatting as Table Cell Styles Sort & Filter Format Analyze Data Find & Select 30 fx F G H I K L M N 0 P J3 A B C C D E 1 Investment Outlays 2 Equipment Cost $ 380,000.00 3 Shipping and Installation $ 35,000.00 4 Capex $ 415,000.00 5 6 7 Increase in Inventory $ 35,000.00 & Increase in Accounts Payable $ 8,000.00 9 ANOWC $ 27,000.00 10 11 Project Operating Cash Flows 12 Unit Sales $ 230,000.00 $ 230,000.00 $ 230,000.00 $ 230,000.00 13 Prices Per Unit $ $ 1.80 $ 1.80 $ 1.80 $ 1.80 14 Total Revenue $ 414,000.00 $ 414,000.00 $ 414,000.00 $414,000.00 15 Operating Cost W/O Depereciation $ 186,300.00 $ 186,300.00 $ 186,300.00 $ 186,300.00 16 Depreciation $ 145,250.00 $ 124,500.00 $ 103,750.00 $ 41,500.00 17 Total Costs $ 331,550.00 $ 310,000.00 $ 290,050.00 $ 227,800.00 18 Operating Income $ 82,450.00 $ 103,200.00 $ 123,950.00 $186,200.00 19 Taxes on Operating Income $ 12,368 S 15,480 $ 18,593 $ 27,930 20 EBIT, After Tax Operating Income $ 70,082.00 $ 87,720.00 $ 105,358.00 $158,270.00 21 Add back depreciation $ 145,250.00 124,500 $ 103,750.00 $ 41,500.00 27 EBIT + [xin $ 215,393.00 $ 212,220.00 $ 209,108.00 $ 199,770.00 23 24 25 Project Termination Cash Flows 26 Salvage Value $ 40,000.00 27 Rax on Salvage Value $ 6,000.00 28 After Tax Salvage Value $ 34,000.00 29 ANOWC - Recovery of NOWC $ 27,000.00 30 Project Free Cash Flows $ 442,000.00 $ 260,770.00 31 EBIT + DEP - CAPEX - ANOWC 32 33 34 Sheet1 + Enter 101%Step by Step Solution
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