Ask Question, Ask an Expert


Ask Basic Finance Expert

A firm is considering taking a project that will produce $12 million of revenue per year. Cash expenses will be $5 million, and depreciation expenses will be $1 million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $2 million. What is the free cash flow on the project, per year, if the firm is in the 40 percent marginal tax rate?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M944112

Have any Question? 

Related Questions in Basic Finance

You have located the following information on webbs heating

You have located the following information on Webb's Heating & Air Conditioning: debt ratio is 61 percent, capital intensity is 1.30 times, profit margin is 11.8 percent, and the dividend payout is 18.00 percent. Calcula ...

An important source of temporary cash is trade credit which

An important source of temporary cash is trade credit, which does not actually bring in cash, but instead slows its outflow. Vendors often provide discounts for early payment. What is the formula to determine the effecti ...

Assignmentzero rates and arbitrage pricing and introduction

Assignment Zero rates and arbitrage pricing, and introduction to duration Please turn in one copy per group. Please do not submit this printout along with your homework. Please show your work. Please write all of your na ...

Careers in financeuse the internet and or strayer resource

Careers in Finance Use the Internet and / or Strayer Resource Center to research career options within the field of finance. Consider the Bureau of Labor Statistics Website, and the Websites of finance professional assoc ...

1 specifications for a part for a dvd player state that the

1. Specifications for a part for a DVD player state that the part should weigh between 24.6 and 25.6 ounces. The process that produces the parts has a mean of 25.1 ounces and a standard deviation of .26 ounce. The distri ...

Comment on the following frank calls his broker to complain

Comment on the following: Frank calls his broker to complain that the stock the broker sold him has fallen in value and Frank has lost a lot of money. The broker says: "Look, I made money and the brokerage firm made mone ...

Impact of ecb response to greece crisis how did the debt

Impact of ECB Response to Greece Crisis: How did the debt repayment problems in Greece affect creditors from other countries in Europe? How did the ECB's stimulative monetary policy affect the Greek crisis?

An investor has a cash of 10000000 at disposal he wants to

An investor has a cash of $10,000,000 at disposal. He wants to invest in a bond with $1,000 nominal value and whose dirty price is equal to 107.457%. 1. What is the number of bonds he will buy? 2. Same question if the no ...

Financial analysis comparison of nike amp uafinancial

Financial Analysis Comparison of Nike & UA Financial Analysis Comparison of Nike & Under Armour Case Analysis (p. 55 of your text) First, calculate the below ratios for Nike, Inc. for the years 2013 & 2014. Nike balance ...

Activity instructionchoose a country not the united states

Activity Instruction Choose a country (not the United States or Canada) that has not already been chosen by another learner and post your country choice in the discussion area. Then, identify some political and currency ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate