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PLEASE HELP ASAP!! Use the following to answer questions 9 - 12 The ABC Co. is analyzing a project that has projected sales of $189,400

PLEASE HELP ASAP!!

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Use the following to answer questions 9 - 12 The ABC Co. is analyzing a project that has projected sales of $189,400 and costs of $102,300. The project requires an investment in inventory of $15,000. Fixed assets of $80,000 are needed and will be depreciated using the MACRS three-year class. Accounts payable will increase by $36,000. The increases in inventory and account payable will revert back to normal at the end of the project's life. An interest expense of $11,000 will be incurred annually. The project has a life of 3 years. At the end of the three years, the equipment has a salvage value of $26,000. The company requires a 10% rate of return. The tax rate is 34%. 9- What is the total cash flow in year 0? A) -$59,000 B) -$72,000 C) -$87,000 D) $95,000 E) -$108,000 10- What is the total cash flow in year 1? A) $56,176 B) $61,517 ) C) $66,552 D) $69.574 E) $87,693 11- What is the annual cash flow in year 3? A) $59,693 B) $61,517 C) $66,552 D) $77,603 E) $86,214 12- (2 points) What is the net present value of this project? A) $77,603 B) $86,214 C) $92,536 D) $96,885 E) $ 103,848 13- Which of the following would cause erosion? I. A gas station owner expands floor space to make room for a convenience store. II. You begin selling coffee in new, small-sized pouches alongside your regular-sized coffee cans. III. You open a Harvey's just down the street from your McDonalds franchise. A) ) I only B) I and II only C) C III only D) I and III only E) II and III only 14- A project with IRR - -100% is operating at A) the cash break-even point ) B) the accounting break-even point C) the financial break-even point D) an amount less than all break-even points E) an amount greater than all break-even points

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