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P915 Calculating Profitability Index [L07] Year Cash Flow 0 $7,900 1 4,500 2 4,800 3 3,700 a. What is the protability index for the cash

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P915 Calculating Profitability Index [L07] Year Cash Flow 0 $7,900 1 4,500 2 4,800 3 3,700 a. What is the protability index for the cash flows if the relevant discount rate is 8 percent? :I b. What is the protability index for the cash flows if the relevant discount rate is 20 percent? :I c. What is the profitability index for the cash flows if the relevant discount rate is 24 percent? :l Rock Haven has a proposed project that will generate sales of 1,995 units annually at a selling price of $41 each. The xed costs are $22,400 and the variable costs per unit are $1355. The project requires $39,400 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $10,700 and the tax rate is 35 percent. What is the operating cash flow? Multiple Choice 0 $14,774 $17,588 $24,483 $34,826 0000 $28,620 A proposed new project has projected sales of $151,300, costs of $76,540, and depreciation of $5,340. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches. The EBIT approach The bottom-up approach The top-down approach The tax-shield ppproachQuad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.674 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $130,200. The project requires an initial investment in net working capital of $186,000. The project is estimated to generate $1,488,000 in annual sales, with costs of $595,200. The tax rate is 22 percent and the required return on the project is 14 percent. What is the project's Year 0 net cash flow? What is the project's Year 1 net cash flow? What is the project's Year 2 net cash flow? What is the project's Year 3 net cash flow? What is the NPV?Quad Enterprises is considering a new 3-year expansion project that requires an initial xed asset investment of $4.4 million. The fixed asset falls into the 3-year MACRS class {MACRS Table} and will have a market value of $344,400 after 3 years. The project requires an initial investment in net working capital of $492,000. The project is estimated to generate $3,935,000 in annual sales, with costs of $1.5?4.400. The tax rate is 23 percent and the required return on the project is 15 percent. What is the project's year 0 net cash flow? :| What is the project's year1 net cash ow? :| What is the project's year 2 net cash ow? :| What is the project's year 3 net cash flow? :| What is the NPV'? :I

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