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1. 2. 3. You are evaluating a project for your company You estimate the sales price to be $320 per unit and sales volume to

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You are evaluating a project for your company You estimate the sales price to be $320 per unit and sales volume to be 4.200 units in year 1: 5,200 units in year 2 , and 3,700 units in year 3. The project has a three-year life. Variable costs amount to $170 per unit and fixed costs are $210,000 per year. The project requires an initial investment of $237,000 in assets which will be depreciated straight-line to zero over the three-year project life, The actual market value of these assets at the end of yeat 3 is expected to be $42,000. NWC requirements at the beginning of each year will be approximately 12 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 12 percent. What is the operating cash flow for the project in year 2 ? Munpie Choice $387,890 $500070 $387.890 $500,070 $491,000 $466.890 You are evaluating a product for your company. You estimate the sales price of product to be $170 per unit and sales volume to be 10,700 units In year 1,25700 units in year 2; and 5,700 units in year 3, The project has a 3 year Mfe Variable casts amount to $95 per unit and fixed costs ore $207,000 per year. The project requires an initial investment of $345,000 in assets which will be depreciated straight-ine to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be 547,000 . NWC requirements at the beginning of each year will be approximately 17x of the projected sales during the coming year. The tax rate is 21% and the required return on the project is 10K. What will the year 2 fiee cash flow for this project be? Mutiple crnoice 51.383945 51605.500 $1,383,345 $1,605,500 $1,268,345 $1,961,345 Town Crier has 6.3 milion shares of common stock outstanding, 3.3 million shares of preferred stock outstanding, and 23.00 thousand bonds. If the common shares are selling for $29.40 per share, the preferred share are selling for $16.80 per share, and the bonds are selling for 96.87 percent of pat, what would be the weight used for common stock in the computation of Town Crier's WACC? Muntiple Choice 6547 6607 70+46 65.47% 66.67% 70.44% 33.33%

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