Q1

Q2.

A company plans to start a sinking fund so that it will have money to purchase a new 18-wheeler ten years from now. The cost of the truck is expected to be $200,000 and the company uses an interest rate of 6% per year. if the company makes the first deposit inot the fund at the end of third year, and then each year a payment of the same amount as the first deposit, how much much each one be in order to have the $200,000 at the end of year ten, to the nearest $1000?

A. 36,000

B. 32,000

C. 30,000

D. 26,000

E. 25,000

Question4 What is the Tax Shield of a company with Profit after Tax Depreciation Capital Expenditure Interest $14 $4.80 $3 S9 where any increase in Stock and Debtors is fully offset by an increase in Creditors? Assume a tax rate of 30% and the answer to the nearest million