Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show answer with work A project currently generates sales of $10.8 million, variable costs equal to 50% of sales, and xed costs of $2.9

image text in transcribed

please show answer with work

image text in transcribed
A project currently generates sales of $10.8 million, variable costs equal to 50% of sales, and xed costs of $2.9 million. The firm's tax rate is 35%. a. What are the effects on the after-tax prots and cash ow, if sales increase from $10.8 million to $12 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax prot by $ million- cash ow by $ million. b. What are the effects on the after-tax profits and cash flow, if variable costs increase to 60% 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 prot by $ million- cash ow by $ million

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

Essentials of Managerial Finance

Authors: Scott Besley, Eugene F. Brigham

14th edition

324422709, 324422702, 978-0324422702

More Books

Students also viewed these Finance questions