ABC, Inc., is consideringpurchase of a new equipment. The expected sales are expected to be $5988380. The annual cash operating expenses are expected to be $3425021. The annual depreciation is estimated to be $671893 and the interest expense is estimated to be $227614. If the tax rate is 35%, what is the operating cash flow?

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Question 2

1pts

A project requires $33564 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

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Question 3

1pts

ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $484742, the annual variable costsare expected to be $144312, the annual fixed costs are expected to be $36378, the annual depreciation expenses are expected to be $115051. Assuming a tax rate of 36.9%, what is the operating cash flow?

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Question 4

1pts

ABC Company purchased $45051 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $4789. What is the After-taxSalvage Value if the tax rate is 29%?

The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.

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Question 5

1pts

ABC,Inc is planning the purchase of new equipment that costs $177045. The project is expected to last for 7 years. Each year, the new project is expected to sell 172 units for $492 per unit. The variable costs are expected to $20 per unit and the fixed costs are expected to be $23335. The equipment will be depreciated on a straight-line basis over the 7-year life of the project.That is, the depreciation each year will be $177045/7. Assuming a tax rate of32%, what is the operating cash flow?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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Question 6

1pts

A project has an initial requirement of $247514 for new equipment and $8984 for net working capital. The installation costs to get the new equipment in working condition are 11774. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $71185. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $97613 and the cost of capital is 7% What is the project's NPV if the tax rate is 26%?

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Question 7

1pts

A project requires $155361 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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Question 8

1pts

A project has an initial requirement of $248634 for new equipment and $10472 for net working capital. The installation costs are expected to be $11957. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $71227. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $79430 and the cost of capital is 5% What is the project's NPV if the tax rate is 34%?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35in the answer box.