Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows.   Assume the following annual estimates: -trip revenue of $20,000 -depreciation expense of $1,000 -gas and maintenance of $3,000 -insurance of $900 -tax rate of 25% - 5-year project - 10% discount rate - for sake of calculation ease, all cash flows occur on the last day of the year. What is the present value of your OCF?   Use the $ symbol and round to the nearest dollar

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter14: Multinational Capital Budgeting
Section: Chapter Questions
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  1. Let's say you are going to be an Uber driver and want to estimate your annual operating after tax cash flows.   Assume the following annual estimates:

-trip revenue of $20,000

-depreciation expense of $1,000

-gas and maintenance of $3,000

-insurance of $900

-tax rate of 25%

- 5-year project

- 10% discount rate

- for sake of calculation ease, all cash flows occur on the last day of the year.

What is the present value of your OCF?   Use the $ symbol and round to the nearest dollar

 

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