Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer both questions Problem 6 Intro Creminy, Inc. estimates revenue of $82,000, costs of 541,000, and depreciation of $13,000 related to a new project.

please answer both questions
image text in transcribed
image text in transcribed
Problem 6 Intro Creminy, Inc. estimates revenue of $82,000, costs of 541,000, and depreciation of $13,000 related to a new project. The marginal tax rate is 34% The project will require a capital expenditure of $51,000. It will also require an additional $18,000 in current (operating) assets and will create an extra $14,000 in current (operating) liabilities. Part 1 What is incremental earnings + depreciation? 0+ decimals Submit Part 2 What is the change in net working capital? 0+ decimals Submit Part 3 What is the free cash flow? 0+ decimals Submit BAttempt 1/10 for 1 pts. BAftempt 1/10 for 1 pts. B Attempt 1/10 for 1 pts. Problem 9 Intro IBM is planning to produce an expert system based on artificial intelligence and expects the following cash flows (in $ million) at the end of each year. Part 1 What is the project's profitability index? 2+ decimals Year Cash flow 0 -36 1 10 15 20 30 The company requires a return of 11% from this project. Submit 10 4 Attempt 4/10 for 0.8 pls. A

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction To Personal Finance

Authors: Anne Marie Ward

2nd Edition

1907214267, 978-1907214264

More Books

Students also viewed these Finance questions