Please I know you guys can just answer one at a time:( but I try multiple times in each one and I still don't get it correct
(Calculating changes in net operating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of $320,000. Duncan Motors has a 30 percent marginal tax rate. This project will also produce $54,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $36,000 $25,000 Inventory 28,000 34,000 Accounts payable 51,000 87,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the project's free cash flow in year 1? The free cash flow of the project in year 1 is $17. (Round to the nearest dollar.) Question 5, P12-13 (simi. Part 1 of 2 HW Score: 37.5%, 30 of 80 points O Points: 0 of 10 Save (Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $3,100,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,200,000, while increasing depreciation by $370,000 per year. If the firm's tax rate is 29 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? C!!! At a tax rate of 29%, the project's estimated net operating profit after taxes (NOPAT) is s] (Round to the nearest dollar.) (Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 7,000 of these per year for 10 years after which time this project is expected to shut down with solar-powered skateboards taking over). The gas skateboards would sell for $90 each with variable costs of $50 for each one produced, and annual fixed costs associated with production would be $150,000. In addition, there would be a $1,500,000 initial expenditure associated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the simplified straight-line method down to zero over 10 years. The project will also require a one-time initial investment of $40,000 in net working capital associated with inventory, and this working capital investment will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate is 35 percent. a. What is the initial cash outlay associated with this project? b. What are the annual net cash flows associated with this project for years 1 through 9? c. What is the terminal cash flow in year 10 (that is, what is the free cash flow in year 10 plus any additional cash flows associated with termination of the project)? ... a. The initial cash outlay associated with this project is $. (Round to the nearest dollar.)
