Question
Tetious Dimensions is introducing a new product that is expected to increase it net operating income by $475,000. The company has a 30% marginal tax
Tetious Dimensions is introducing a new product that is expected to increase it net operating income by $475,000. The company has a 30% marginal tax rate. This project will also produce $200,000 of depreciation per year. In addition, this project will cause the following changes:
Without the Project With the Project
Accounts Receivable $105,000 $130,000
Inventory $200,000 $280,000
Accounts Payable $90,000 $130,000
What is the projects free cash flow for year 1?
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Covered Calls Option Trading Strategy
Authors: Andrew P.C.
1st Edition
1549658697, 978-1549658693
