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A company needs an increase in working capital of $50,000 in a project that will last 4 years. The company's tax rate is 30% 4

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A company needs an increase in working capital of $50,000 in a project that will last 4 years. The company's tax rate is 30% 4 and its after-tax discount rate is 8%. Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using table. The present value of the release of the working capital at the end of the project is closest to: 02:-37.10 Multiple Choice $36,750 $15,000 $25,726 5: Rhoads Corporation is considering a capital budgeting project that would require an investment of $160.000 in equipment with a 4-year expected life and zero salvage value. Annua, incremental sales will be $460,000 and annual ncremental cash operating expenses vil be $330,000 The company's income tax rate is 30% and the after-tax discount rate is 15, The company uses straight ine depreciation on all equipment; the annual depreciation expense will be $40.000. Assume cash fows occur at the end of the year except for the initial investments. The company takes income taxes into account in its )Capital buclgeting. 08-0 48 Click here to view Exhibit 138-1 to determine the appropriate discount factors) using table. The net present value of the project is closest to: 5 Multiple Choice 02:36:24 O $178.252 $252,000 $97,040 $134,168 6: Fontana Corporation is considering a capital budgeting project thot would require investing $240,000 in equipment with an expected life of 4 years and zero salvage value. The annual incremental sales would be $640,000 and the annual incremental cash operating expenses would be $440,000. The company's income tax rte is 30%, The company uses straight line depreciation on all equipment 02:36 03 The total cash flow net of income taxes in year 2 is: Multiple Choice $158,000 $200,00o Multiple Choice 6 $158,000 ( 02:35:49) $200,000 $88,000 $140,000

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