1.A project has an initial requirement of $215150 for new equipment and $14587 for net working capital. The installation costs are expected to be $17777. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $86421. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $95352 and the cost of capital is 9% What is the project's NPV if the tax rate is 37%?

2.A project has an initial requirement of $209253 for new equipment and $11366 for net working capital. The installation costs to get the new equipment in working condition are 4272. 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 $108590. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $71531 and the cost of capital is 9% What is the project's NPV if the tax rate is 37%?

3.A project requires $360566 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 5 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 $102336. The project is expected to last for 5 years. Each year, the new project is expected to sell 108 units for $463 per unit. The variable costs are expected to $70 per unit and the fixed costs are expected to be $13828. The equipment will be depreciated on a straight-line basis over the 5-year life of the project.That is, the depreciation each year will be $102336/5. Assuming a tax rate of37%, what is the operating cash flow?

5.ABC Company purchased$50484of equipment5years ago.The equipment is7-year MACRS property.The firm is selling this equipment today for$8128.What is the After-taxSalvageValueif the tax rate is35percent?The MACRS allowance percentages are as follows,commencing with year one:14.29,24.49,17.49,12.49,8.93,8.92,8.93,and4.46percent.

6.A project requires$471428of equipment that is classified as7-year property.What is the depreciation expense in Year5given the following MACRS depreciation allowances,starting with year one:14.29,24.49,17.49,12.49,8.93,8.92,8.93,and4.46percent?

7.A project requires $256625 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?

8.ABC,Inc purchased some new machinerythreeyears ago for$284753.Today,it is selling this machinery for$55043.What is the After-tax Salvage Value ofthenewmachinery?Assumethat thetax rate is36%.

The MACRS allowance percentages are as follows,starting with Year1:20.00,32.00,19.20,11.52,11.52,and5.76percent.

9.ABC, Inc is planning the purchase of a new equipment which will cost $26526. The project is expected to last for 7 years. Theequipment will have a book value of $3629 at the end of Year 7.The increase in net working capital is expected to be $3061, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $10291.What is the Total Cash Flow in Year 7 of the project if the equipment can be sold for $6185 and the tax rate is 37%?

Note: In the last year of the project, the Total Cash Flow = Operating Cash Flow + Terminal Cash Flow

10.ABC, Inc. is considering purchaseof a new equipment. The sales are expected to be $816446 and the total cash expenses are expected to be $393782. The annual depreciation is $60655 and the tax rate is 25.6%. What is the operating cash flow?

11.ABC, Inc., is consideringpurchase of a new equipment. The expected sales are expected to be $5513676. The annual cash operating expenses are expected to be $2801184. The annual depreciation is estimated to be $798729 and the interest expense is estimated to be $212677. If the tax rate is 27%, what is the operating cash flow?

12.ABC, Incis considering the purchase of a new equipment. The equipment costs $16576 and an additional $573 is needed to install it. The project will also require an initial $6122 investment in net working capital. The equipment will be depreciated straight-line to zero over a five-year life. What is the project's initial investment outlay?

13.ABC Company purchased $94118 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $5129. What is the After-taxSalvage Value if the tax rate is 15%?

The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.