Problem 10.01 – Relevant Cash Flows (Parker & Stone, Inc.)
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Given the land price, net price, plant building cost, and worth of grading cost… find the cash flow amount.
Given the land price, net price, plant building cost, and worth of grading cost… find the cash flow amount.
Find the annual sales for the company.
Calculate the projected net income for a new investment given the projected sales, variable costs as a percentage of sales, fixed costs, depreciation, and tax rate.
Fill in the missing numbers, calculate OCF, then find the depreciation tax shield.
Use the different approaches to calculate operating cash flow.
Figure out the annual depreciation and the book values for the end of the year.
Find the after-tax cash flow from selling the asset.
Find the aftertax salvage value.
Find the operating cash flow of the project.
Find the NPV for the project.