1 You work for Whittenerg Inc , which is considering a new project whose data are shown below Under the new tax law, the equipment used in the project is eligible for 100 bonus depreciation, so it will be fully depreciated at t 0 What is the project's Year 1 cash flow Sales revenues, each year $70,200 Operating costs $24,200 Interest expense $8,000 Tax rate 25 0 a $42,500 b $36,500 c $28,500 d $46,000 e $34,500 2 Temple Corp is considering a new project whose data are shown below The equipment that would be used has a 3 year tax life Under the new tax law, the equipment used in the project is eligible for 100 bonus depreciation, so it will be fully depreciated at t 0 The equipment would have a zero salvage value at the end of the projects life No change in net operating working capital (NOWC) would be required Revenues and operating costs are expected to be constant over the project's 3 year life What is the project's NPV Do not round the intermediate calculations and round the final answer to the nearest whole number Risk adjusted WACC 10 0 Equipment cost $63,900 Sales revenues, each year $53,900 Annual operating costs $24,500 Tax rate 25 0 a $9,213 b $12,394 c $11,267 d $6,910 e $4,178 3 Fool Proof Software is considering a new project whose data are shown below The equipment that would be used has a 3 year tax life, and the allowed depreciation rates for such property are 33 0 , 45 0 , 15 0 , and 7 0 for Years 1 through 4 Under the new tax law, the equipment used in the project is eligible for 100 bonus depreciation, so it will be fully depreciated at t 0 Revenues and other operating costs are expected to be constant over the project's 10 year expected life What is the Year 1 cash flow Equipment cost $55,000 Sales revenues, each year $82,400 Operating costs $18,600 Tax rate 25 0 a $52,388 b $47,850 c $63,800 d $66,000 e $48,813 4 As assistant to the CFO of Boulder Inc , you must estimate the Year 1 cash flow for a project with the following data Under the new tax law, the equipment used in the project is eligible for 100 bonus depreciation, so it will be fully depreciated at t 0 What is the Year 1 cash flow Do not round the intermediate calculations and round the final answer to the nearest whole number Sales revenues $11,300 Operating costs $4,000 Tax rate 25 0 a $9,125 b $7,300 c $5,475 d $4,475 e $5,840

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1. You work for Whittenerg Inc., which is considering a new project whose data are shown below. Under the new tax law, the equipment used

1. You work for Whittenerg Inc., which is considering a new project whose data are shown below. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the project's Year 1 cash flow? Sales revenues, each year $70,200 Operating costs $24,200 Interest expense $8,000 Tax rate 25.0% a. $42,500 b. $36,500 c. $28,500 d. $46,000 e. $34,500

Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The equipment would have a zero salvage value at the end of the projects life. No change in net operating working capital (NOWC) would be required. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

Risk-adjusted WACC	10.0%
Equipment cost	$63,900
Sales revenues, each year	$53,900
Annual operating costs	$24,500
Tax rate	25.0%

a. $9,213

b. $12,394

c. $11,267

d. $6,910

e. $4,178

Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33.0%, 45.0%, 15.0%, and 7.0% for Years 1 through 4. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow?

Equipment cost	$55,000
Sales revenues, each year	$82,400
Operating costs	$18,600
Tax rate	25.0%

a. $52,388

b. $47,850

c. $63,800

d. $66,000

e. $48,813

As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number.