Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. this is the whole question, work it out! elmdale

This is the whole question, work it out! Elmdale Enterprises is deciding whether to...

80.2K

Verified Solution

Question

Finance

imageThis is the whole question, work it out!

Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars): Year 1 Year 2 158.5 62.5 26.2 Revenues COGS and Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate 128.5 41.3 22.9 3.7 31.1 35% 7.6 35.9 35% a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) b. What are the free cash flows for this project for years 1 and 2? a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Sales 128.5 41.3 Operating Expenses Depreciation 22.9 EBIT Income tax at 35% $ Unlevered Net Income

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the following histogram in which a student created a histogram about the heights of...

Algebra
Q

You always need a printer-scanner-copier. You can go with an inkjet printer or a laser printer....

Finance
Q

Discuss the strategic, tactical and operational roles of the procurement.

Operations Management
Q

The segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ...

Accounting
Q

A drug called Cannabidiol or CBD is used medically at higher doses for seizure disorders, etc....

Psychology
Q

Cross two pink-flowering Snapdragons. What are the expected genotypic and phenotypic ratios in their offspring?

Biology
Q

The forces F F2 F3 Fn acting on an object are in equilibrium if the...

Basic Math
Q

Te Gata in the following table show the association between cigar smoking and death from...

Statistics
Q

If a redemption is treated as a dividend (nonqualified), what happens to the basis of...

Accounting
Q

Exercise 7-15 a A new accountant at Shamrock, Inc. is trying to identify which of...

Accounting
Q

this is all the given information. A cash budget, by quarters, is given below...

Accounting
Q

Lynn, age 45, is single and has no dependents. Her income and expenses for 2021...

Accounting