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Sandra runs a side business of teaching kids (and adults who are young at heart) how to lasso tree stumps, branches, and other inanimate objects
Sandra runs a side business of teaching kids (and adults who are young at heart) how to lasso tree stumps, branches, and other inanimate objects for fun. Preliminary analysis on her so-far-so-good revenues (which are essentially pure profit to her) indicates a positive NPV of $27,400. If she ran this analysis based on 7 years of productivity, using a 6% discount rate and a 23% tax rate, what annual before-tax cash flow did she use? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5,125.36. Annual before-tax cash flow If she wants to cut back on her time dedicated to this business, what amount of revenue (before-tax) could she earn and still have an NPV of $6,850 ? (Round present value foctor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5.125 .36 \). Annual before-tax cash flow What percentage reduction in workload would this represent for her? (Round answer to 0 decimal places, e.g. 15\%.) Click here to view the factor table Percentage reduction % Sandra runs a side business of teaching kids (and adults who are young at heart) how to lasso tree stumps, branches, and other inanimate objects for fun. Preliminary analysis on her so-far-so-good revenues (which are essentially pure profit to her) indicates a positive NPV of $27,400. If she ran this analysis based on 7 years of productivity, using a 6% discount rate and a 23% tax rate, what annual before-tax cash flow did she use? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5,125.36. Annual before-tax cash flow If she wants to cut back on her time dedicated to this business, what amount of revenue (before-tax) could she earn and still have an NPV of $6,850 ? (Round present value foctor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5.125 .36 \). Annual before-tax cash flow What percentage reduction in workload would this represent for her? (Round answer to 0 decimal places, e.g. 15\%.) Click here to view the factor table Percentage reduction %
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