ANSWER THE 3 QUESTIONS AND GET INSTANT LIKES 1.

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A corporation has annual sales of $1,500,000 and costs of $698,000 in the first year. A plant is installed at a cost of $1,200,000. It will be depreciated straight line to zero in its useful life of 4 years. The tax rate is 35%. Calculate the operating cash flow for the first year. A. $326,300 B. $521,300 C. $626,300 D. $605,300 An asset has a cost of $100,000. It is to be depreciated using 3-year MACRS depreciation rates. The life of the asset is 3 years. The asset can be sold for $5,000 at the end of its life. Calculate the amount of profit or loss on the sale of the asset. A. Loss of $4,000 B. Loss of $2,410 C. Profit of $5,000 D. Profit of $2,410 The firm has a net income of $2.3 million. The firm's capital structure consists of Equity of $15 million and debt of $10 million. The firm pays 60% of its earnings as dividends. The sustainable growth rate of the firm is: A. 9.20% B. 5.52% C. 3.68% D. 6.53%