9) Use the following information for the next four questions: 9a-9d

The Crimson Dawn Crime Syndicate is reviewing a potential investment project that would result in a new starship that is rumored to be able to make the kessel run in under 12 parsecs. This project would entail a significant initial capital investment of $27,000,000 and these assets would need to be depreciated (straight-line to zero) over their 3 year life. The syndicate expects to be able to sell the assets for $9,750,000 at the end of the projects life.

The syndicate expects to be able to bring in additional revenue of $21,640,000 annually during the 3 year period, and estimates the projects operating costs (excluding depreciation) will be 25% of revenues. The syndicate would also need to commit initial working capital to the project of $3,500,000. While the syndicate is able to avoid most of it's taxes it does expect to pay an approximately 24% tax rate, and usually requires a 11% rate of return for projects of this risk level.

9a) What is the Cash Flow From Assets for Year 0 for this new project?

Select one:

a. $ -30500000

b. $ -32000000

c. $ -29500000

d. $ -31500000

e. $ -28000000

9b) What is the Cash Flow From Assets for Year 1 for this new project?

Select one:

a. 15298847

b. 14494800

c. 15177415

d. 13805570

e. 13551453

9c) What is the Net Present Value for this new project?

Select one:

a. 13427965

b. 12562752

c. 12305153

d. 13766705

e. 12898454

9d) What is the Cash Flow From Assets for Year 3 for this new project?

Select one:

a. 26388981

b. 24775299

c. 26149665

d. 24415186

e. 25404800