Question
1. Operating cash flow (OCF). This year Fin 6020 company shows EBIT of $500 and Depreciation of $100. Currently tax rate is 21%. Calculate NOPAT
1. Operating cash flow (OCF). This year Fin 6020 company shows EBIT of $500 and Depreciation of $100. Currently tax rate is 21%. Calculate NOPAT (Net Operating Profit After Tax) and OCF (Operating Cash Flow). 2. You have a saving plan. Under that plan, you will deposit $500 in a saving account with 12% (APR) at the end of every year. If you deposit that annual amount for 10 years, how much your total saving will be at the end of 10th year? 3. There is a project requesting an initial investment of $10,000. The project is expected to generate following cash flows over the next three years: 0 (now) = -10,000 Year 1 = 6000 Year 2 = 7000 Year 3 = 8000 If a firm plans to launch this project and its WACC (Weighted Average Cost of Capitals) is 10%, how much NPV (net present value) would be?
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