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please help asap thanks A company is considering a new 6-year project that will have annual sales of $201,000 and costs of $124.000. The project
please help asap thanks
A company is considering a new 6-year project that will have annual sales of $201,000 and costs of $124.000. The project will require fixed assets of $243,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 35 percent. What is the operating cash flow for Year 2? Multiple Choice O $59,848 O O $66,380 $54,166 d $77,266 $64,225 A project with a life of 10 has an initial fixed asset investment of $18,480, an initial NWC investment of $1,760, and an annual OCF of -$28,160. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 9 percent, what is the project's equivalent annual cost, or EAC? Multiple Choice $-29,638.06 $-20,021.78 O $-31,197.96 $-26,518.26 O $-32,757.85 Upton Umbrellas has a cost of equity of 10.9 percent, the YTM the company's bonds is 5.5 percent, and the tax rate is 39 percent. The company's bonds sell for 92.9 percent of par. The debt has a book value of $387,000 and total assets have a book value of $945,000. If the market-to-book ratio is 2.53 times, what is the company's WACC? Multiple Choice O 7.94% O 9.37% O O 7.71% 9.12% 4.89%
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