60) Pro forma financial statements A) expressed in real dollars, given a stated base year B) showing projected values for future time periods. C) expressed in a foreign currency D) where all accounts are expressed as a percentage of last year's values B) where the assets are expressed as a percentage of total assets and costs are expressed as a percentage of sales. 61) Which one of the following is a correct method for computing the operating cash flow of prjet asumin s)theirt ense is equal to szen? 5) A) EBITI + Taxes) B) (Sales- Costs)(I - Depreciation)I-Taxes) C) (Sales-Costs)(1-Taxes) IT + Depreciation et income + Depreciation 62) Ausel's is considering a five-year project that will require $738.000 for new fixed assets that will be depreciated straight-line to a zero book value over five y depreciation will be taken. At the end of the project, the fixed assets can be sold for 18 percent of their original cost. The project is expected to generate annual sales of $679,000 with costs of $321,000. The tax rate is 22 percent and the required rate of return is 15.2 percent. What is the amount of the aftertax salvage value? A) $132,840.00 $104,409.20 C)5103,615.20 $105,165.60 E) $118,406.90 ears. No bonus 63) Keyser Mining is considering a project that will require the purchase of $479,000 of 63) equipment. The equipment will be depreciated straight-line to a zero book value over the five-year life of the project after which it will be worthless. The required return is 12 percent and the tax rate is 30 percent. What is the value of the depreciation tax shield in Year 4 of the project assuming no bonus depreciation is taken? A) $143,700 B) $138,400 C) $78,600 D) $28,740 E) $32,200 64)_ 64) Small-company stocks, as the term is used in the textbook, are best defined as the: A) smallest 25 percent of the companies listed on NASDAQ. B) companies whose stock is listed on NASDAQ. C) 500 newest corporations in the U.S D) smallest 20 percent of the companies listed on the NYSE E) companies whose stock trades OTC. 12