5 A project has an initial requirement of $194,703 for new equipment and $9,144 for net working capital The installation costs to get the new equipment in working condition are 5,829 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 $87,651 All of the net working capital will be recouped at the end of the project The annual operating cash flow is $104,534 and the cost of capital is 7 What is the project's NPV if the tax rate is 31 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 6 ABC Corporation is considering an expansion project The necessary equipment could be purchased for $22,551 and shipping and installation costs are another $1,581 The project will also require an initial $7,784 investment in net working capital The company's tax rate is 40 What is the project's initial investment outlay Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 7 A project requires $125,539 of equipment that is classified as 7 year property What is the depreciation expense in 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 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 8 ABC Company has a proposed project that will generate sales of 425 units annually at a selling price of $171 each The fixed costs are $6,602 and the variable costs per unit are $122 The project requires $28,022 of equipment that will be depreciated on a straight line basis to a zero book value over the 4 year life of the project That is, depreciation each year is $28,022 4 The salvage value of the fixed assets is $6,900 and the tax rate is 35 percent What is the operating cash flow for year four Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 10 A project has an annual operating cash flow of $15,483 Initially, this 4 year project required $4,069 in net working capital, which is recoverable when the project ends The firm also spent $10,000 on equipment to start the project This equipment will have a book value of $3,432 at the end of year 4 What is the total cash flow for year 4 of the project if the equipment can be sold for $6,470 and the tax rate is 31 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 12 ABC Compay has the following projections for Year 1 of a capital budgeting project Year 1 Incremental Projections Sales $937,675 Variable Costs $50,385 Fixed Costs $55,644 Depreciation Expense $118,965 Tax Rate 35 Calculate the operating cash flow for Year 1 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 13 ABC Company purchased $18,238 of equipment 5 years ago The equipment is 7 year MACRS property The firm is selling this equipment today for $7,066 What is the aftertax cash flow from this sale if the tax rate is 25 percent 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 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 14 A project requires $347,875 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 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 15 A project has an initial requirement of $164,727 for new equipment and $14,370 for net working capital The fixed assets will be depreciated to a zero book value over the 3 year life of the project and have an estimated salvage value of $146,603 All of the net working capital will be recouped at the end of the project The annual operating cash flow is $79,252 and the cost of capital is 5 What is the project's NPV if the tax rate is 31 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 16 A project requires $340,508 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 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 17 ABC Inc has estimated the following revenues and expenses related phase I of a proposed new housing development Incremental sales $652,871, total cash expenses $388,522, depreciation $27,124, taxes 25 What are the operating cash flows Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points Question 18 ABC has a proposed project which will generate sales of 109 units at a selling price of $234 each The fixed costs are $23,673 and the variable costs per unit are $45 The project requires $175,749 of machinery which will be depreciated on a straight line basis over the 5 year life of the project That is, depreciation each year is $175,749 5 The tax rate is 31 What is the operating cash flow for year 5 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box

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5 A project has an initial requirement of $194,703 for new equipment and $9,144 for net working capital. The installation costs to get the new

A project has an initial requirement of $194,703 for new equipment and $9,144 for net working capital. The installation costs to get the new equipment in working condition are 5,829. 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 $87,651. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $104,534 and the cost of capital is 7% What is the project's NPV if the tax rate is 31%?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 6

ABC Corporation is considering an expansion project. The necessary equipment could be purchased for $22,551 and shipping and installation costs are another $1,581. The project will also require an initial $7,784 investment in net working capital. The company's tax rate is 40%. What is the project's initial investment outlay?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 7

A project requires $125,539 of equipment that is classified as 7-year property. What is the depreciation expense in 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? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 8

ABC Company has a proposed project that will generate sales of 425 units annually at a selling price of $171 each. The fixed costs are $6,602 and the variable costs per unit are $122. The project requires $28,022 of equipment that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. That is, depreciation each year is $28,022/4. The salvage value of the fixed assets is $6,900 and the tax rate is 35 percent. What is the operating cash flow for year four?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 10

A project has an annual operating cash flow of $15,483. Initially, this 4-year project required $4,069 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment will have a book value of $3,432 at the end of year 4. What is the total cash flow for year 4 of the project if the equipment can be sold for $6,470 and the tax rate is 31%?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 12

ABC Compay has the following projections for Year 1 of a capital budgeting project.

Year 1 Incremental Projections:

Sales $937,675

Variable Costs $50,385

Fixed Costs $55,644

Depreciation Expense $118,965

Tax Rate 35%

Calculate the operating cash flow for Year 1.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 13

ABC Company purchased $18,238 of equipment 5 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $7,066. What is the aftertax cash flow from this sale if the tax rate is 25 percent? 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.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 14

A project requires $347,875 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? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 15

A project has an initial requirement of $164,727 for new equipment and $14,370 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $146,603. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $79,252 and the cost of capital is 5% What is the project's NPV if the tax rate is 31%?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 16

A project requires $340,508 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? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 17

ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $652,871, total cash expenses $388,522, depreciation $27,124, taxes 25%. What are the operating cash flows?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

Question 18

ABC has a proposed project which will generate sales of 109 units at a selling price of $234 each. The fixed costs are $23,673 and the variable costs per unit are $45. The project requires $175,749 of machinery which will be depreciated on a straight-line basis over the 5-year life of the project. That is, depreciation each year is $175,749/5.The tax rate is 31%. What is the operating cash flow for year 5?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.