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A. Sesli oku QUESTIONS 1. Compute: increasing in net fixed assets, decrease in accrued taxes, retained ratio, cost of new asset, net income before tax,

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A." Sesli oku QUESTIONS 1. Compute: "increasing in net fixed assets", "decrease in accrued taxes", "retained ratio", "cost of new asset", "net income before tax", "net cash flow for the period", "initial cash outflow", "incremental cash flow for the terminal year before project Windup considerations" and, total amount of uses" according to the information given below: (45p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. Annual cash dividend payments : $3400 Decreasing in net working capital $1400 Depreciation amount (charge) : $13335 Depreciation rate (MACRS) : 44.45% Final salvage value of new asset (after tax) S3800 Gross additions to fixed assets $29550 Net book value of the old asset : $8000 Net change in income after taxes for the period $7165 Net income after tax (annual earnings) S17000 Selling price of the old asset S6000 Tax prepayment S640 20% Terminal-year incremental net cash flow S13000 Total amount of sources S39.000 Total tax payment S3200 Tax rate acer All Sesli oku Vurgu + DE 935200 Tomax payment 2. The company has two investment projects, which have the following characteristics given below: End of Year Project A Project B 0 -S1.600 -S1.600 1 S1.000 $400 2 $750 S600 3 $400 SI.150 NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) Compute the Fisher's rate between the Project A and Project B. (10p) b) Which project is the best for the firm if the discount rate%22% (Sp) c) If the firm value $9.800 before Project A. how much will it be after the Project (10p) (Assumption: discount rate for Project A is 7%) acer 2. The company has two investment projects, which have the following characteristics given below: End of Year Project A Project B 0 -S1.600 -$1.600 1 $1.000 $400 2 $750 S600 3 $400 $1.150 NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. a) Compute the Fisher's rate between the Project A and Project B. (10p) b) Which project is the best for the firm if the discount rate%22? (Sp) e) Ir the firm value 59.800 before Project A, how much will it be after the Project (10p) (Assumption, discount rate for Project A is 179) acer LIQUY THE YER F7 F8 F9 F10 F11 F12 PrtSc Pause

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