question 1: A company currently expects free cash flow in the upcoming year of $25,000. Each year after that, the free cash flow is expected to grow by 3%. The relevant discount rate for the companys cash flows is 9% per year. From a discounted cash flow method, what is the value of the company? Select one: a. $833,000 b. $417,000 c. $25,000 d. $278,000 e. $23,000

QUESTION 2:

For a project of six year duration and 10% per year cost of capital, what is the financial basis breakeven: Upfront cost $500. Unit price $30. Variable cost: $14. Fixed costs $200/yr. Depreciation $70/yr. Taxes 20%. Sales are the same level each year. Select one: a. 20 units/year b. 32 units/year c. 50 units/year d. 41 units/year e. 8 units/year

QUESTION 3:

Which of the following is correct regarding cash basis breakeven? Select one: a. At cash basis breakeven, fixed cash costs are always zero b. At cash basis breakeven, the company may have a positive operating income c. At cash basis breakeven and some depreciation, the operating income is negative d. At cash basis breakeven, the company always will have zero net income e. The sales level required for cash basis breakeven is higher than that for accounting basis breakeven

QUESTION 4:

At a sales level of $40,000, the operating cash flow is $8,500 and the fixed operating costs are $12,000. What will be the operating cash flow if sales are increased to $48,000? Select one: a. $18,200 b. $16,500 c. $10,200 d. $11,100 e. $12,600

QUESTION 5:

For a project of six year duration and 10% per year cost of capital, what is the financial basis breakeven: Upfront cost $2,500. Unit price $30. Variable cost: $14. Fixed costs $1,200/yr. Depreciation $770/yr. Taxes 25%. Sales are the same level each year. Select one: a. 5 units/year b. 68 units/year c. 107 units/year d. 41 units/year e. 28 units/year