XYZ have estimated free cash flows of P2,200,000 on year 5 and assumes that the company’s cash flow will grow by 3% per year. Using discount rate of 11%, what is the terminal value?

Q: A set of cash flows begins at $15,000 the first year, with an increase each year until n = 12 years.…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: Green Corporation anticipates a cash requirement of P1,000 over a 1- month period. It is expected…

A: Given, Cash requirement (1-month) = P1,000 Annual interest rate = 24% Transaction cost of borrowing…

Q: Zycad has sales of $110 million a year. If Zycad reduces their processing float by 3 days, what is…

A: The computation of increase in firm’s average cash balance is as follows:

Q: The company is going to invest P26,000, P34,000, P46,000, and P54,000 respectively into a savings…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: For the following cash flow diagram, the equation that represents the equivalent at the end of (year…

A: Annuity refers to series of equalized payments that are either made at start or end of specific…

Q: The ABC Company has contracted to make the following payments: 500,000 immediately; 50,000 at the…

A: Year  Cash flow  PV 8% Present value  0 500,000 1.4693 734664 1 50,000 1.3604   68024.45 2…

Q: Using the tables provided, if an investment is made now for $19,200 that will generate a cash inflow…

A: Given, The investment is $19,200 Cash inflow is $6,400. Rate is 10%

Q: lustine Global Info Tech records the following cash flows at the end of each year for a project. If…

A: “Since you have asked multiple questions, we will solve the first question for you.  If you want a…

Q: What is the present value of the following cash flows, if the discount rate is 10% annually?…

A: The present value is the sum of discounted cash flows.

Q: Crane Telecommunications Corp. has made an investment in another company that will guarantee it a…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 4. Sovereign-Tea Company projected to make even monthly cash payments of P150,000 during the year.…

A: Total relevant cost = Holding cost +Transaction cost Formula for Holding cost= k(C/2) and formula…

Q: Your company is expected to earn (as a cash flow) $3 million next year, $3.06 million the following…

A: The value of the company is calculated as the discounted value of cash flows.

Q: Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the…

A: Optimal upper cash limit means the limit where the cash balance is of the amount which is of ideal…

Q: Construct the cash flow diagram using an interest rate of 12% per year.

A: Cash flow diagram is a representation of cash inflows and cash outflows over a specified period of…

Q: A company has the following net cash inflows. Today -$7000, Year 1-$15 000, Year 2-$9000, Year 3+…

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: If my beginning cash balance is 100,000 with current A/R 50,000 net terms of 30, sales by quarter…

A: Given in the question Beginning cash =$100,000 A/R = 50,000 net terms of 30 Means received within 30…

Q: how do I build a projected cash flow for the year, by month?

A: Given in the question Beginning cash =$100,000 A/R = 50,000 net terms of 30 Means received within 30…

Q: The firm PAR inc. forecasts monthly disbursements of $ 75,000 over the next year. The firm invests…

A: Data given: Monthly requirement of cash   = $75,000. Fixed Transaction cost               = $150…

Q: A set of cash flows begins at $80,000 the first year, with an increase each year until n = 10 years.…

A: Present Value(PV) is current value of any amount that is to be paid or received in future. It is…

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end extra $6,000 at…

A: calculation of net present value are as follows

Q: Pinocchio Inc. has a total annual cash requirement of P9,075,000 which are to be paid uniformly.…

A: Since you have posted a multipart question therefore we will solve the first three parts only.…

Q: What uniform annual series of cash flows over a 12-year period is equivalent to an investment of…

A: PVA=PMT 1+rn-1/r (1+r)n   Present value annuityFVA=PMT1+rn-1/r    Future value…

Q: A company’s most recent free cash flow was $270. The companyexpects to have a FCF in 1 year of $300,…

A: Value of the firm is calculated by using the following formula: OFCF/k - g Where OFCF is the…

Q: A corporation has $344 million in sales,$232 million in COGS, $53 million in inventory, $128 million…

A: Cash conversion cycle = [Average inventoryCost of goods sold  + Average receivablesNet sales-Average…

Q: A company is planning to expand its business is costing OMR 24509. The following cash inflows are…

A: Profitability index is the ratio of present value of cash inflows to present value of cash outflows.

Q: Lux Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. Lux has…

A: The question is related to Baumol Cash model. The optimum cash conversion size is calculated with…

Q: Consider the case of Morose Otter Hydraulic Manufacturers Inc.: Morose Otter Hydraulic Manufacturers…

A: MOROS OTTER HYDRAULIC MANUFACTURERS INC   C D E F   Year Cash flow PVIF Present value 6…

Q: A company’s most recent free cash flow was $600 and is expectedto grow at a constant rate of 4%…

A: Growth rate(g)=4%WACC=10%Recent cashflow(FCF0)=$600

Q: Justine Global Info Tech records the following cash flows at the end of each year for a project. If…

A: Capital budgeting: It is a method of evaluating the projects which required huge investments and…

Q: A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: XYZ plans to open a new store with the following forecasted free cash flows. If the interest rate is…

A: NPV basically stands for net present value . It is the present value of all the future cash flow…

Q: A company forecasts free cash flow in one year (i.e. FCF1) to be -$10 million and free cash flow in…

A: cash flow in 1 year=$10 million cash flow in 2 years=$20 million rate=4% W.A.C.C=14% Current value=?

Q: Green Corporation anticipates a cash requirement of P1,500 over a 1- month period. It is expected…

A: The question is based on the concept of Financial Management.

Q: Beginning Cash Flow of Year P2,500 2 2,750 3 3,000 4 3,250 5 3,500

A: Present value is the current value of a future cash flow.   Present value of inflows=cash…

Q: Misra Inc. forecasts a free cash flow of $55 million in Year 3, i.e., at t = 3, and it expects FCF…

A: horizon value formula: horizon value =FCFt×1+gWACC-g where, FCF T = free cashflow at time t g…

Q: Consider the case of Flying Cow Aviation Inc.: Flying Cow Aviation Inc. is expected to generate a…

A: To compute the intrinsic value per share, total value of firm is determined by determining the total…

Q: Sol Manoloto Company has a sales of P110 million a year. If Sol Manoloto Company reduces its…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…

A: Present value is the sum of discounted future cashflow

Q: Parramore Corp has $10 million of sales, $2 million of inventories, $4 million of receivables, and…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: A set of cash flows begins at $25,000 the first year, decreasing 10% each year until n = 10 years.…

A: The present value is the sum of cashflows discounted at given discount rate

Q: Justine Global Info Tech records the following cash flows at the end of each year a project. If the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Eaglet Corporation has a 12 percent opportunity cost of funds and currently sells on terms of…

A: Credit terms refer to the payment time period offered to the customers at the time of sale of a…

Q: The following table represents the cashflows (in rand) of a company. Year Cash flows 3 40000 5…

A: The Modified Internal Rate of return: The modified rate of return is a useful measure to evaluate…

Q: The ABC Block Company anticipates receiving $50,000 per year from its investments (with no change)…

A: Calculate discount Factor     Interest rate 8%     Inflation rate 3%     DISCOUNT…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.