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Hello, I need help with 3 problems from financial management. Shouldn'ttake more than an hour. Please let me know if you cannot finish this in
Hello, I need help with 3 problems from financial management. Shouldn'ttake more than an hour. Please let me know if you cannot finish this in 2.5 hours. Thanks.
Please, provide your solution including calculations. Q1 Fitzgerald Computers is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Equipment cost (depreciable basis) Straight-line depreciation rate Sales revenues, each year Operating costs (excl. deprec.) Tax rate $65,000 33.333% $60,000 $25,000 35.0% $28,115 $28,836 $29,575 $30,333 $31,092 Q2 Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? $10,155. 68 $10,690. 19 $11,252. 83 $11,845. 09 $12,468. 51 Q3 What is the present value of the following cash flow stream at a rate of 6.25%? $411. 57 $433. 23 $456. 03 $480. 03 $505. 30Step by Step Solution
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