5) discounted value of cash inflows is less than the initial investment. Question 9 (1 point) Saved CASH FLOW ESTIMATION. USE THE BELOW DATA TO ANSWER THE QUESTIONS THAT FOLLOW. Calculate the depreciable cost of the equipment. $40,000 S500 S800 Price of equipment Shipping cost Modification cost Installation cost Annual sales Operating expenses, excluding depreciation Working capital Investment period: N Salvage value (.e., market value of equipment at t=4) Cost of capital: Tax rate Interest charges $2,000 $38,000 $22,500 $1,800 4 years $2,800 8.00% 20.00% $1,740 1) $41,300 2) $43,300 3) $10.825 4) $45.100 Question 10 (1 point) saved The equipment will be fully depreciated. Calculate annual depreciation expenses Question 12 (1 point) Calculate net cash flow for Year 1, that is, cash flow at t = 1. 1) $14,565 2) $18,605 3) $6,111 2 4) $45,100 5 Question 13 (1 point) Calculate adjusted cash flow in the final years, that is, final cash flow at t-4. 1) $14,565 2) $18.605 3) $6,111 4) 545,100 Question 14 (1 point) Calculate NPV. Should the project be accepted? 1) $14,565.00: Yes Question 14 (1 point) Calculate NPV. Should the project be accepted? 1) $14,565.00: Yes 2) $18,605.00; Yes 3) $6,110.65: Yes 4) -$45,100; NO Question 15 (1 point) Calculate IRR 1) 11.02% 2) 2) 13.72% 3) 14.21% 4) 11.11% Question 16 (1 point) CASH FLOW ESTIMATION. Which of the following items are not included in cash flow estimation? [1] Depreciation expenses [II] Interest expenses [III) Sunk costs [IV] Dividends [V] Working capital 1) I, II, IV ) 2) 11, II, IV 3) III. IV. V 4) I, III. V Submit Quiz 11 of 16 questions saved