Question
5 You plan to replace a $250,000 piece of equipment in 5 years. You want to ensure that you can pay for the equipment in
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You plan to replace a $250,000 piece of equipment in 5 years. You want to ensure that you can pay for the equipment in cash.
If your bank savings account pays 12% annually, about how much do you need to invest today in order to have $250,000 in 5 years?
(Hint: Be sure to use a present value factor table.)
$21,000
$50,000
$123,000
$142,000
$167,941
0.4 points
Question 6-
An investment opportunity will yield an annual $200,000 Cash Revenues (i.e., Cash Flow from Operations) and $40,000 in Cash-based Operating Expenses. This investment has $-0- Depreciation Expense, and Income Taxes are 25%.
What is the PRE-TAX"INCREMENTAL CASH FLOW FROM OPERATIONS" from this opportunity?
$160,000
$40,000
$150,000
$120,000
0.4 points
Question 7-
An investment opportunity will yield an annual $200,000 Cash Revenues (i.e., Cash Flow from Operations) and $40,000 in Cash-based Operating Expenses. This investment has $-0- Depreciation Expense, and Income Taxes are 25%.
What is the "AFTER-TAX CASH FLOW FROM OPERATIONS" from this opportunity?
$150,000
$120,000
$40,000
$160,000
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