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12. You are given the following data for year 1: Revenues = 5000; fixed costs = 1,500; total variable costs = 2000; depreciation = $300;

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12. You are given the following data for year 1: Revenues = 5000; fixed costs = 1,500; total variable costs = 2000; depreciation = $300; tax rate = 20 percent. What is the after-tax cash flow for the project for year 1. Select one: A. OR 3,500 O B. OR 1,200 C. OR 1,260 D. OR 960 Question 6 Not yet answered Marked out of 1.50 P Flag question If the cash flows for project Z are Co = -1,000; C, = 600; C = 800; and Cx = 2,000, calculate the payback period for the project. Select one: O a. 1.5 year b. >3 years c. 2.5 years d. 2 years Deluxe Company expects to pay a dividend of OR 6 per share at the end of year 1, OR 5 per share at the end of year 2, and then be sold for OR 45 per share at the end of year 2. If the required rate of return on the stock is 12 percent, what is the current value of the stock? Select one: A. OR 45.22 O B. OR 32.00 C. OR 29.18 O D. OR 39.86 r riay question Super Computer Company's stock is selling for OR 60 per share today. It is expected that, at the end of one year, it will pay a dividend of OR 5 per share and then be sold for OR 70 per share. Calculate the expected rate of return for the shareholders. Select one: A. 10 percent B. 20 percent C. 15 percent D. 25 percent Music Company is considering investing in a new project. The project will need an initial investment of OR 150,000 and will generate OR 40,000 (after- tax) cash flows for seven years. Calculate the NPV for the project if the cost of capital is 9 percent. Select one: A. OR 15, 935 B. OR 40,000 C. OR 51,200 O D. OR 67,870 Hammer Company proposes to invest OR 180,000 in a new type of hammer-making equipment. The fixed costs are OR 70,000 per year. The equipment will last for five years. The manufacturing cost per hammer is OR 6 and each hammer sells for OR 14. Calculate the break-even Select one: O A. 22,500 units B. 8,750 units O C. 110,000 units O D . 13,250 units

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