1. Assume that you sell the business for $250,000 and your current book value at the time of the sale is $209,042. You are taxed at a rate of 35%. What is your net sale price (i.e. sale price net of taxes)?

2. You and a partner are considering the purchase of a convenience store.? The store has annual sales of $500,000 and is paying annual payroll of $100,000. The cost of goods sold every year is $150,000. The firm has miscellaneous expenses (taxes, insurance, garbage, electricity, natural gas, security, maintenance, property taxes, training, advertising, accounting fees, bank charges, etc.) of roughly $68,000 per year. If depreciation is equal to $15,000 per year and the tax rate is equal to 33% then what is the net income?

3. Assume the following cash flows for a convenience store project you are considering, the initial outflow is $658,327 followed by ten operating cash flows $123,550 in years 1 to 10. You will also receive a terminal cash flow of $438,500 also at year 10.

Compute the NPV of the project given an interest rate of 12%.

4. Assume inflation is expected to be 2% over the next 10 years and that the expectation is reflected in the cost of capital. What would you expect next years sales to be provided that this years sales are expected to be $4,628,000?

5. You and a partner are considering the purchase of a convenience store. The store has annual sales of $500,000 and is paying annual payroll of $100,000. The cost of goods sold every year is $150,000. The firm has miscellaneous expenses (taxes, insurance, garbage, electricity, natural gas, security, maintenance, property taxes, training, advertising, accounting fees, bank charges, etc.) of roughly $68,000 per year. If depreciation is equal to $18,759 per year what is the Earnings before taxes?

6. You and a partner are considering the purchase of a convenience store. The store has weekly sales of $91,881 and is paying weekly payroll of $4,500. The cost of goods sold every week is $78,000. The firm has miscellaneous expenses (taxes, insurance, garbage, electricity, natural gas, security, maintenance, property taxes, training, advertising, accounting fees, bank charges, etc.) of roughly $3,000 per week. What are the annual sales for the conenience store?

7. Assume the following cash flows for a convenience store project you are considering, the initial outflow is $660,955 followed by ten operating cash flows $123,550 in years 1 to 10. You will also receive a terminal cash flow of $438,500 also at year 10.

Compute the Payback of the project given an interest rate of 12%.

8. Assume the following cash flows for a convenience store project you are considering, the initial outflow is $660,000 followed by ten operating cash flows $123,550 in years 1 to 10. You will also receive a terminal cash flow of $438,500 also at year 10.

Compute the IRR of the project given an interest rate of x (written as a decimal). Enter your answer as a decimal.