A project requires the purchase of $612,000 of equipment. The equipment will be depreciated straight-line to a book value ever the three-year life of the project. The equipment can be scraped at the end of the project for 45 percent of its original cost. Annual sales from this project are estimated at $418,000 with each expenses of $287,000 working capital equal to 25 percent of sales will be required to support the project. The required return is 35 percent. What is the cash flow in Year 2 of the project? A) $156, 550 B) $121,000 C) $296, 440 D) $154, 600 E) $335, 560 Panelli's is analyzing a project with an initial cost of $110,000 and cash inflows of $65,000 in year 1 and $74,000 in year 2. This project is an extension of the firm's current operations and thus is equally as risky as the current firm. The firm uses only debt and common stock to finance its operations and maintains a debt-equity ratio of 45. The aftertax cost of debt is 4.8 percent, the cost of equity is 12.7 percent, and the tax rate is 35 percent. What is the projected net present value of this project? A) $8, 333 B) $7, 411 C) $7, 809 D) $9, 840 E) $8, 938 Assume a project has a sales quantity of 8, 600 units, plus or minus 5 percent and a sales price of $69 a or minus 1 percent. The expected variable cost per unit is $11 plusminus 3 percent and the expected fixed costs $290,000 plus or minus 2 percent. The depreciation expense is $68,000. The tax rate is 34 percent. What operating cash flow under the best-case scenario? considering a new product launch. The project will cost $574,000, have a five-year life, and have depreciation is straight-line to zero. Sales are projected at 160units per year, price per unit will variable cost per unit will be $12, 500, and fixed costs will be $179,000 per year. The required percent and the relevant tax rate is 35 percent. Based on your experience, you think the unit sales, fixed cost projections given here are probably accurate to within plusminus 3 percent. What is the ? coupon bond pays interest semiannually. The bond has a face value of $1,000