The momi corporation’s cash flow from operations before interest and taxes was $4 million in the year just ended, and it expects that this will grow by 5% per year forever. to make this happen, the firm will have to invest an amount equal to 16% of pre tax cash flow each year. the tax rate is 35%. depreciation was $300,000 in the year just ended and is expected to grow at the same rate as the operating cash flow. the appropriate market capitalization rate for the unlevered cash flow is 13% per year, and the firm currently has debt of $6.5 million outstanding. use the free cash flow approach to value the firm’s equity. (round answer to nearest whole number. enter your answer in dollars not in millions.)

Precision dyes is analyzing two machines to determine which one it should purchase. the company requires a rate of return of 15 percent and uses straight-line depreciation to a zero book value over the life of its equipment. ignore bonus depreciation. machine a has a cost of $462,000, annual aftertax cash outflows of $46,200, and a four-year life. machine b costs $898,000, has annual aftertax cash outflows of $16,500, and has a seven-year life. whichever machine is purchased will be replaced at the end of its useful life. which machine should the company purchase and how much less is that machine's eac as compared to the other machine's

Aquatic marine stores company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. aquatic uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 3 pounds per unit; $ 6 per pound direct labor: 4 hours per unit; $ 19 per hour during the first quarter, aquatic produced 5 comma 000 units of this product. actual direct materials and direct labor costs were $ 65 comma 000 and $ 330 comma 000, respectively. for the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5 comma 000 units.

Financial information that is capable of making a difference in a decision is