Using the income statement from the previous exercise, forecast a ten year cash flow using the following assumptions:
Capital Expenditures of $50,000 per year.
Leasehold Improvements of $10,000 per year.
DSO of 75 Days.
Inventory Turnover of 12 times.
Accounts Payable of 30 days.
Depreciation is constant.
The combined Federal and State Tax Rate is 40%.
There are no additional financing expenses associated with the transaction.
After you have completed your cash flow forecast, calculate a Net Present Value assuming a discount rate of 15%.
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It is from the textbook. Might help explain how the forecast works
okay thanks
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Ill finish this paper in 2 hrs time....meanwhile start composing that good review?
Great! Sure?
Hello buddy
I have followed all the instructions and completed the paper.
Please leave a potive comment and a good review.
Great! Let me have a look on it
okay