Need Help 10-11-12

Question 10 1 point Number Help What is the operating cash flow for year 4 of project A that Silver Sun Entertainment should use in its NPV analysis of the project? The tax rate is 20 percent. During year 4, project A is expected to have relevant revenue of 84,000 dollars, relevant variable costs of 21,000 dollars, and relevant depreciation of 17,000 dollars. In addition, Silver Sun Entertainment would have one source of fixed costs associated with the project A. Yesterday, Silver Sun Entertainment signed a deal with Yasmin Advertising to develop a marketing campaign. The terms of the deal require Silver Sun Entertainment to pay Yasmin Advertising either 21,000 dollars in 4 years if project A is pursued or 13,000 dollars in 4 years if project A is not pursued. Finally, the equipment purchased for the project would be sold in 4 years for an expected after-tax cash flow of 6,000 dollars. Number Question 11 1 point Number Help Oxygen Optimization is considering the caffeine project, which would involve selling caffeinated oxygen for 1 year. The firm expects sales of caffeinated oxygen to be 80,000 dollars and associated costs from providing caffeinated oxygen (such as tanks, filters, etc.) to be 55,000 dollars. The firm believes that sales of regular oxygen, which is currently sold by the firm, would be 32,000 dollars less with the addition of caffeinated oxygen, and that costs associated with regular oxygen to be 28,000 less with the addition of the caffeinated oxygen. Finally, Oxygen Optimization believes that the introduction of caffeinated oxygen would increase traffic to its facilities, which would increase expected sales of other products (such as masks) by 26,500 dollars more than it would be without the addition of caffeinated oxygen, and increase costs by 11,000 more than it would be without the addition of caffeinated oxygen. What is the operating cash flow (OCF) for year 1 that Oxygen Optimization should use to analyze the caffeine project? The tax rate is 40 percent and the cost of capital is 8.76 percent. Relevant depreciation is expected to be 5,000 dollars. Number Question 12 For project A, the cash flow effect from the change in net working capital is expected to be - 100 dollars at time 2 and the level of net working capital is expected to be 1,900 dollars at time 2. What is the level of current liabilities for project A expected to be at time 1 if the level of current assets for project A is expected to be 7,500 dollars at time 1? 1 point Number Help Number