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For questlons 1 and 2 , consider the following firm accounting items for chil inc: Revinues 615 million Cost of Goods Soldi 55 million Imployee

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For questlons 1 and 2 , consider the following firm accounting items for chil inc: Revinues 615 million Cost of Goods Soldi 55 million Imployee Salaries 52 million Depreciationi 32 million Interest Payment: $2 million Increase in Non:Cash Working Capitali: 53 million Q1. How much money would Qhi inci pay to the government in federal corporate taves? A. $0.21 militon Tax= B. 50.84 million C. 51.47 million D. 55 million Q2. What quantity would you have to add to GHi inc earninga to get freecesh flowa? A. \$o Earny=1552=22) 0. $1 milion c. $4 million D. 57 million Q3. Suppose the appropriate opportunity cest of capital for a sarticularasset is 10os. This implies which of the following? A. The hurdle rate for investing in this asset is 10%. B. The cash flows from this asset grow by 10% each year. c. This is a financial asset and not a real asset. D. This asset's present value is higher than another asset whose opportunity cost of capital is 5%

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