What is the expected free cash flow for the worst case scenario?
Destroya Extermination Services projects next year's sales of its new X-Ray termite inspection service at 5,000 inspections priced at $175 each. The variable costs per inspection are expected to be $87.50 Fixed cash costs are expected to be $90,000 and depreciation $110,000. The company's marginal tax rate is 34%. Destroya believes that any of its forecasts including fixed costs, but not depreciation or the tax rate which are known for certain, could be high or low by as much as 10%.
A) $153,973
B) $43,972
C) $84,910
D) $383,240
Answer: A
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A) more than the cash paid. B) less than the cash paid. C) equal to the cash paid. D) all of the above can be correct.
If a discretionary cost can be treated like an engineered cost, cost control may be achieved through the use of
a. program budgeting. b. zero-base budgeting. c. capital budgeting. d. flexible budgeting.
Generally avoid walking into the "U" when the tables are in a "U"-shaped arrangement
a. true b. false
You have started an architecture company and are targeting several companies that you feel might be interested in your services. Should you e-mail copies of your portfolio to these companies?
A) Yes. B) No.