9.1 Calculating Operating Cash Flow Mater Pasta, Inc., has projected a sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run 70 percent of sales, or about $1,002 in this case. The depreciation expense will be $80, and the tax rate is 22 percent. What is the operating cash flow? (See Problem 9.) hog o five vear

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Chapter10: Project Cash Flows And Risk
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CHAPTER REVIEW AND SELF-TEST PROBLEMS
9.1
Calculating Operating Cash Flow Mater Pasta, Inc., has projected a sales
volume of $1,432 for the second year of a proposed expansion project. Costs
normally run 70 percent of sales, or about $1,002 in this case. The depreciation
expense will be $80, and the tax rate is 22 percent. What is the operating cash
flow? (See Problem 9.)
Scenario Analysis A project under consideration costs $500,000, has a five-year
Toro The reguired
92
Transcribed Image Text:CHAPTER REVIEW AND SELF-TEST PROBLEMS 9.1 Calculating Operating Cash Flow Mater Pasta, Inc., has projected a sales volume of $1,432 for the second year of a proposed expansion project. Costs normally run 70 percent of sales, or about $1,002 in this case. The depreciation expense will be $80, and the tax rate is 22 percent. What is the operating cash flow? (See Problem 9.) Scenario Analysis A project under consideration costs $500,000, has a five-year Toro The reguired 92
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