Elmdale Enterprises In Deciding Whether To Expand Its Production Facilities Athough Long Term Cash Flows Are Difficult T 1 (22.59 KiB) Viewed 26 times
Elmdale Enterprises In Deciding Whether To Expand Its Production Facilities Athough Long Term Cash Flows Are Difficult T 2 (30.16 KiB) Viewed 26 times
Elmdale Enterprises in deciding whether to expand its production facilities Athough long term cash flows are difficult to animale, management has projected the following cash flows for the first two years (in millions of dollar) m a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold included as part of operating experies) b. What are the free cash flows for this project for years 1 and 22 a. What are the incremental earings for this project for years 1 and 27 (Note: Assume any incremental cost of goods sold is ded as part of coating expens) Calculate the incrementalarnings of this project below (Round to one decimal place) Incremental Eamings Forecast (millions) Year 1 Yoar 2 Sales 5 Operating Expenses
Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Revenues Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate Year 1 126.8 39.3 20.5 2.6 29.4 21 % Year 2 168.1 59.6 42.3 7.2 38.8 21 %
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