Deep Woods Coal Mines owns a shallow mine which is currently sitting idle The

Deep woods coal mines owns a shallow mine which is

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237.Deep Woods Coal Mines owns a shallow mine which is currently sitting idle. The property, which includes the mine, was originally purchased for $18.5 million. The property was valued at $6.8 million when mining ceased and is currently valued at $7.1 million. If the company would spend $329,000, they could convert this unused mine into an underground storage facility for campers, vehicles, and boats. The company estimates that storage fees of $280,000 can be generated per year which would net the firm an annual net income of $163,001. What is the opportunity cost associated with the storage facility project?A. $6.8 millionB. $7.1 millionC. $7.129 millionD. $7.429 millionE. $7.564 million238.Jake's Auto Sales currently sells $3.4 million of new vehicles and $1.7 million of used vehicles a year. Jake is considering expanding his operations and adding an imported car to his lineup. Should he do this, he expects to sell $680,000 worth of imported cars per year. However, he also expects to lose about $450,000 of his upper end current sales. The expansion will necessitate spending $78,000 to add an additional showroom onto the current facility. What is the erosion cost associated with this expansion project?
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239.Hansel's Outings is considering opening a new wilderness trail for tourists. The trail will require $120,000 in fixed assets such as emergency shelters, rest rooms, and first aid stations plus an additional $40,000 in net working capital. The project is expected to produce tourism revenue of $140,000 annually. The annual cash expenses are projected at $75,001. The assets associated with the project belong in a 25% CCA class. The tax rate is 34%. What is the operating cash flow in the first year for this project? 240.Shelley's Quilt Shop has annual sales of $682,000 and a profit margin of 6%. The annual depreciation expense is $43,001. What is the amount of the operating cash flow if Jenny's has no long-term debt? 241.The Market Place Grill has annual sales of $1.9 million, depreciation of $238,000, and net working capital of $196,001. The firm has a tax rate of 35% and a profit margin of 8.2%. The firm has no long-term debt. What is the amount of the operating cash flow? A. $88,585B. $197,800C. $284,585D. $393,800E. $521,200242.Jacob's Jewelers is considering carrying a new product line which is expected to produce annual sales of $450,000 and increase cash expenses by $305,001. If the product line is added, taxes will increase by $38,001. The additional depreciation expense will be $36,001. An initial cash outlay of $65,000 is required for net working capital. What is the amount of the operating cash flow using the top-down approach?
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