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#9 Discounted CF
#9 Discounted CF
A project that increased sales was accompanied by a $50,000 increase in inventory, a $20,000 increase in accounts receivabl
increase in accounts payable. Assuming these amounts remain constant, by how much has net working capital increased?
Q1)
Net Working Capital:
45000
Q2)
What is the amount of the operating cash flow for a firm with $500,000 profit before tax,
$100,000 depreciation expense, and a 35% marginal tax rate?
Q3
What is the net effect on a firm's working capital if a new project
requires: $30,000 increase in inventory, $10,000 increase in
accounts receivable, $35,000 increase in machinery, and a $20,000
increase in accounts payable?