Question
1.Use the straight-line depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a car for $30,000. Company XYZ expects to use
1.Use the straight-line depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a car for $30,000. Company XYZ expects to use this car for four years and at the end of the four years they will sell the car for $5,000. How much will the car depreciate each year?
2.Use the unit-cost-of depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a machine for $150,000 on January 1, 2014. They figure the salvage value of the machine is $40,000 and the machine will produce 20,000 units during its useful life.
6.Use the sum-of-year depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a new machine for $100,000 and expects the machine will last for 10 years.
7.Use the double-declining depreciation method to calculate the depreciation for the following scenario. Company XYZ bought a machine for $100,000. They plan on using the machine for five years and would like to sell the machine for $10,000 after the five years.
8.Company XYZ has a free cash flow of $30,000. Company XYZ estimates their cash flow will grow 10% in the first two years, 5% for the following three years. Company XYZ will have an assumed annual growth of 3% and a weight average cost of capital of 8%. What is Company XYZ's discount cash flow?
9.Company XYZ has $1,000,000 in net income, $50,000 in depreciation and $600,000 in working capital. What is their operating cash flow?
10.Company XYZ had an initial investment of $300,000 into a machine for their new project. It had a useful life of five years and salvage value of $25,000. Company XYZ incurred a yearly working capital requirement of $10,000 when they bought this machine. What is the terminal cash flow?
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