Carlita’s Tasty Tacos is considering opening a new location…

Carlita’s Tasty Tacos is considering opening a new location in the large city that currently has two other locations.  The combined sales at the other two locations are $1,245,000 annually.  The new location is expected to generate sales of $450,000 in the first year with 4% sales growth per year for the next 7 years.  If the operating profit margin is 40% and the tax rate is 10%, what is the net after-tax cash flow for the new unit for the first year of operations?

Use the following cash flows for years 0-7 to calculate the…

Use the following cash flows for years 0-7 to calculate the Payback Period for Project Florentine.  CF 0          (161,000) CF 1              43,000 CF 2              41,000 CF 3              40,000 CF 4              38,000 CF 5              34,000 CF 6              34,000 CF 7              28,000

Use the following Weighted Average Cost of Capital (WACC) an…

Use the following Weighted Average Cost of Capital (WACC) and the cash flows for years 0-4 to calculate the Net Present Value (NPV) for Project Freefall.  WACC 5% CF 0         (131,000) CF 1             45,000 CF 2             47,000 CF 3             49,000 CF 4             38,000