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thumbs up if correct. TY ating working capital) Duncan Motors is introducing a new product and has an expected change in net operating income of
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ating 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 32 percent marginal tax rate. This project will also produce $53,000 of depreciation per year. In addition, this project will cause the following changes in year 1 Without the Project with the Project Accounts receivable 32.000 $17.000 Inventory 31.000 42.000 Accounts payable 53,000 83,000 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 15 (Round to the nearest dollar Related to Checkpoint 12.1) (Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,200,000 and cash expenses (including both fixed and variable costs) of $1,100,000, while increasing depreciation by S250,000 per year. In addition, the firm's tax rate is 29 percent. Calculate the operating cash flows for the new project, The firm's operating cash flows are s (Round to the nearest dollar) (Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $3,400,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,050.000, while increasing depreciation by $380,000 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? At a tax rate of 29%, the project's estimated net operating profit after taxes (NOPAT) $ (Round to the nearest dollar) Step by Step Solution
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