5. Equipment to manufacture motorcycles was expected to last for 6 years. It was purchased by Nariman Point 4 years ago for $2,400,000. It is depreciated straight line and the owner plans to sell it for $370,000. What is the ATSV if the tax rate of Nariman Point is 40 percent

Multiple Choice

• $370,000

• $542,000

• $518,000

• $370,000

• $198,000

6. What is the annual operating cash flow of Navynagar that plans to sell mugs and glasses if it has a tax rate of 40 percent? The mugs are priced at $10.70 and the glasses will be priced at $23.70. The variable cost per unit is $5.15 and $11.30 for mugs and glasses respectively. The proprietor, Disha feels that she can sell 2,700 of the mugs and 1,730 of the glasses every year. The fixed costs are $2,120 each year and the depreciation is $1,000.

Multiple Choice

• $20,590

• $20,990

• $23,153

• $22,262

• $14,127

7.

ardeo will receive payments for 19 years, and the payments will increase 4 percent per year. If the interest rate is 10 percent; what is the present value of Tardeo's cash flows if the first cash payment is $640,000?

Multiple Choice

• $20,297,279

• $104,645

• $20,297,279

• $6,712,456

• $6,992,142