1.A project has an initial requirement of $193,378 for new equipment and $10,259 for net working capital. The installation costs to get the new equipment in working condition are 11,379. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $131,577. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $104,571 and the cost of capital is 11% What is the project's NPV if the tax rate is 26%?

2.ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $755,643, the annual variable costsare expected to be $42,115, the annual fixed costs are expected to be $97,262, the annual depreciation expenses are expected to be $116,476. Assuming a tax rate of 32.7%, what is the operating cash flow?

3.A project requires $155,708 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

4.ABC,Inc is planning the purchase of new equipment that costs $167,901. The project is expected to last for 13 years. Each year, the new project is expected to sell 141 units for $330 per unit. The variable costs are expected to $51 per unit and the fixed costs are expected to be $19,238. The equipment will be depreciated on a straight-line basis over the 13-year life of the project.That is, the depreciation each year will be $167,901/13. Assuming a tax rate of36%, what is the operating cash flow?