16. A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $70,000 would be required to manufacture their new product, which is estimated to produce sales of $120,000 in new revenues each year. The cost of goods sold to produce these sales (not including depreciation) is estimated at 41% of sales, and the tax rate at this firm is 39%. If straight-line depreciation is used to calculate annual depreciation, what is the estimated annual operating cash flow from this project each year? (Answer to the nearest dollar.)

15.

Suppose a company has proposed a new 4-year project. The project has an initial outlay of $15,000 and has expected cash flows of $8,000 in year 1, $8,000 in year 2, $11,000 in year 3, and $14,000 in year 4. The required rate of return is 13% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)

14.

If a project has an initial outlay of $39,000 and cash flows of $10,000 per year for the next 5 years, what is the IRR of this project? (Answer to the nearest tenth of a percent, e.g. 12.3).