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Given the following information answer questions 18 to 20 ALD Corp. is considering a project that requires a $40,000 initial cost for a new machine

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Given the following information answer questions 18 to 20 ALD Corp. is considering a project that requires a $40,000 initial cost for a new machine that will be depreciated straight line to a salvage value of 0 on a 8-year schedule. The project will require a one-time increase in the level of net working capital of $10,000. The project will generate an additional $9,000 in revenues and $2,000 in operating expenses each year. The project will end at the end of year 2, at which time the machinery is expected to be sold for $30,000, and the working capital is expected to be 100% recovered. ALD's tax rate is 40%. In a discounted cash flow analysis of this project: 18) What would be the projected year 1 free cash flow? O $ 7,800 $ 6,200 O $4,400 $5,600 Question 19 15 pts Given the following information, answer questions 18 to 20 ALD Corp, is considering a project that requires a $40,000 initial cost for a new machine that will be depreciated straight line to a salvage value of 0 on a 8-year schedule. The project will require a one-time increase in the level of net working capital of $10,000. The project will generate an additional $9,000 in revenues and $2,000 in operating expenses each year. The project will end at the end of year 2, at which time the machinery is expected to be sold for $30,000, and the working capital is expected to be 100% recovered. ALD's tax rate is 40%. In a discounted cash flow analysis of this project: 19) What would be the projected year 2 free cash flow? $ 37.800 O $ 44,400 $ 46,200 545,600 ALD Corp. is considering a project that requires a $40,000 initial cost for a new machine that will be depreciated straight line to a salvage value of 0 on a 8-year schedule. The project will require a one-time increase in the level of net working capital of $10,000. The project will generate an additional $9.000 in revenues and $2,000 in operating expenses each year. The project will end at the end of year 2, at which time the machinery is expected to be sold for $30,000, and the working capital is expected to be 100% recovered. ALD's tax rate is 40%. In a discounted cash flow analysis of this project: 20) Assuming a discount rate of 6%, what would be NPV of this two-year project? O $2,459 $ 1,582 $-3,033 O $ 2,806

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