Author Question: You estimate that if a new 4D computer graphic display product is launched by your firm, revenues ... (Read 44 times)

bobypop · **on:** Apr 25, 2021

Question 1

Using the following data, what is the change in net working capital?

Account	Change in Balance
Cash	+ $12,000
Accounts Payable	+ $21,000
Accrued Liabilities	+ $ 6,000
Depreciation	+ $10,000
Inventories	+ $24,000

◦ -$4,000
◦ -$1,000
◦ +$9,000
◦ +$19.000

Question 2

You estimate that if a new 4D computer graphic display product is launched by your firm, revenues will increase by $3,053 in the first year and 10% each year for the next 3 years. Expenses will be 50% of revenues. Depreciation is computed using MACRS for an asset with a 3-year life and a basis of $7,236. The tax rate is 40%. Compute the second year,s annual cash flows.

MACRS Depreciation Rates

Year	3-Year	5-Year
1	33.33%	20.00%
2	44.45%	32.00%

◦ $1,542
◦ $1,881
◦ $2,294
◦ $2,386
◦ $2,974

johnpizzaz · **Reply #1 on:** Apr 25, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 55% of students answer this correctly