Consider a project with the following information. Units Sold in Year 1 Sale Price in Year! 850 units Operating Costs in Year 1 $50 per unit Depreciation Rate in Year 1 40% of sales Interest Expense in Year! Cost of Fixed Assets in Year 0 Increase in Accounts Payable in Year 1 $5.500 Increase in Accounts Receivable in Year 1 $10.000 Increase in Inventories in Year 1 $5,000 Tax rate 850x50 42,50 20% $4,000 $50,000 +8,50 +4,0 Calculate the project's Operating Cash Flow in Year 1. 35% a. $17,475 b. S10,575 $20,075 d. $16,075 e. None of the above A machine costs $3,500 upfront (Year O). It will last three years and will have annual operat maintenance costs of $380 in Years 1 through 3. The appropriate discount rate is 10%. Wha Equivalent Annual Cost (EAC) of this machine? Round your final answer to the nearest del a. -$1,775 b. -$1,610 3500 * 10% 350 c. -$1,625 d. -$1,787 e. None of the above 1-(1+10%) Which of the following statements is false regarding cash flows and accounting carni a. Managers should use cash flows instead of accounting earnings when computing present value. b. If a firm buys a piece of equipment for $1 million in a given year, the entire $1 will be deducted as an expense when computing the accounting earnings for tha c. If a firm buys a piece of equipment for $1 million in a given year, the entire $1 will be treated as an outflow of cash when computing the cash flow for that yea d. Accounting earnings and cash flow are not the same. e. None of above