Excel Problem #2 - CARDINAL MFG CO NORM STRAIGHT LINE...

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CARDINAL MFG. CO. NORM STRAIGHT LINE DEPRECIATION Time Period $140,000 $25,000 Increase in Net Working Capital Increase in Accounts Payable $15,000 Initial Cash Outlay Estimated Salvage Value, Year 4 $10,000 Tax Rate 40% Sales-units Estimated length of project-years 4 Price / unit Revenues 2008 Revenues 12,000 units $10.00 sale price/unit Fixed Cash Operating Costs $4.00 unit cost Depreciation 2009 Revenues 16,000 units Operating Income Before Taxes $12.00 sale price/unit Taxes $5.00 unit cost Operating Income After Taxes 2010 Revenues 20,000 units Depreciation $14.00 sale price/unit Operating Cash Flow $6.00 unit cost 2011 Revenues 24,000 units Sale Price of Equipment $16.00 sale price/unit Book Value $7.00 unit cost Operating Gain(Loss) Taxes Fixed Cash Operating Costs $50,000 Terminal Cash Flow Expected Operations 4-year life Recoup of Net Working Capital NET CASH FLOWS Modified Accelerated Cost Recovery System (MACRS)
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This note was uploaded on 04/18/2008 for the course FIN 301 taught by Professor Mccabe during the Spring '08 term at University of Louisville.

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Excel Problem #2 - CARDINAL MFG CO NORM STRAIGHT LINE...

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