Question 11 (2 points) Nakama Corporation is considering investing in a project: . It would have a 4 year expected useful life. . The company would need to invest $168,000 in equipment that will have zero salvage value at the end of the project. Annual incremental sales would be $520,000 and annual cash operating expenses would be $300,000. In year 3 the company would have to incur one-time renovation expenses of $96.000. . Working capital in the amount of $10,000 would be required. The working capital would be released for use elsewhere at the end of the project. The company's tax rate is 30%. The company uses straight-line depreciation on all equipment. The company's discount rate is 12% The depreciation expense in year 2 will be: $40,000 $44,500 $66,000 $42,000 Question 12 (2 points) The income tax expense in year 2 will be: $50,400 $24.600 $53,400 $32,600 Question 13 (2 points) The net Cash Flow for year 2 is: $220,000 $70,600 $ 166,600 $(178,000) Question 14 (3 points) The Net Present Value (NPV) for the whole project is: $286,546 $230,000 $56,260 $496,394 Previous Page Next Page Page 9 of 9 + Wir