JU.35/60 Total points awarded Help Exit A firm evaluates all of its projects by using the NPV decision rule. 14 Year Cash Flow -$29,000 23,000 15,000 10,000 0/1.93 points awarded UN Scored a. At a required return of 29 percent, what is the NPV for this project? $ 2,627 eBook Print b. At a required return of 37 percent, what is the NPV for this project? References $ -337.39 Consider an asset that costs $299,200 and is depreciated straight-line to zero over i year tax life. The asset is to be used in a 4-year project; at the end of the project. asset can be sold for $37,400. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of asset? Multiple Choice $243,112.00 $29,172.00 $29,172.00 $54,513.18 ooo $57,382.29 $60,251.40 All of the following are useful for understanding Profitability Index, except: Multiple Choice A profitability index greater than 1 equals a positive NPV A profitability index less than 1 equals a negative NPV. O The initial investment is excluded when calculating the present value of the future cash flows. o The initial investment is included when calculating the present value of the future cash flows. The denominator for the profitability index is the cost of the project Quad Enterprises is considering a new 5-year expansion project that requires an initi fixed asset investment of $3.672 million. The fixed asset will be depreciated straight- to zero over its 5-year tax life, after which time it will be worthless. The project is estimated to generate $3,264,000 in annual sales, with costs of $1,305,600. If the tax rate is 22 percent, what is the OCF for this project? Multiple Choice $1,689,120 $1,604,664 $954,720 $1,773,576 o $1,958,400