(Answered) A nine-year project has a 50 probability to generate annual

Finance

A nine-year project has a 50% probability to generate annual revenues of $130,000 and a 50% probability to generate revenues of $99,000. The high-revenue scenario has variable costs of $80,000 and the low-revenue scenario has variable costs of $67,200. Fixed costs are $14 000. The annual depreciation is $3500 in either case and the tax rate is 34%. What is the expected annual operating cash flow?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92861636
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Suppose you expect to rent a house when you retire in 35

Suppose you expect to rent a house when you retire in 35 years. Today, rent for a 3 bedroom, 2 bathroom home costs $36,000 per year. You expect inflation to be 2% per year between now and when you die and that rent will ...

A suppose you purchase a 3-year zero-coupon bond with face

(a) Suppose you purchase a 3-year zero-coupon bond with face value of $1000 and a price of $850. What is the bond's yield? If you hold the bond to maturity, what will be your effective annual return? (b) Now suppose you ...

Sara has decided to invest in commercial paper with a par

Sara has decided to invest in commercial paper with a par value of $1,000,000 and a 60-day maturity for $990,000. If Sara decides to hold this investment to maturity then what will her annualized yield be?

What is marketing discipline what is most peoples

What is marketing discipline? What is most people's perception of marketing discipline? Name an organization that has done a great job marketing. What did they do to make you feel this way?

A few years ago simon powell purchased a home for 250000

A few years ago, Simon Powell purchased a home for $250,000. Today, the home is worth $450,000. His remaining mortgage balance is $200,000. Assuming that Simon can borrow up to 70 percent of the market value, what is the ...

Please help me study for a test by helping me with this

Please help me study for a test by helping me with this question and showing work/formulas used. A trust agreement you inherit from your great aunt states that you are to receive $2,000 on the first day of each year, sta ...

Certain financial ratios for elizabeth arden for its most

Certain financial ratios for Elizabeth Arden for its most recent year below, along with the average ratios for its industry. Based on those ratio a. Does Arden seem to prefer to finance its assets with debt or with equit ...

How you will adjust your small business cash budget to

How you will adjust your small business cash budget to manage contingencies (such as emergencies and market shifts) as well as product and distribution shifts?

Ultra petroleum has earnings per share of 156 and a pe

Ultra Petroleum has earnings per share of $1.56 and a P/E ratio of $32.48. What is the stock price?

A call option on a stock has an exercise price of 3450 if

A call option on a stock has an exercise price of? $34.50. If the stock price at expiration is? $37.50, what is the option payoff for a short call? position?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert