QUESTION 14 If a company must pay $400 million in 12 years, what is the Present Value of this payment if the relevant discount rate is 8%? $158.85 million $400 million $664.27 million $858.85 million QUESTION 15 Gerry Co. has sales (revenue) of $1,000,000 and $240,000 in expenses (COGS and SG&A). Depreciation expense is $360,000. Given that the tax rate is 40 percent, compute the cash flow for Gerry Co. $240,000 $456,000 $600,000 $750,000 QUESTION 16 If a firm has a profit margin of 30%, this means in an accounting sense) that for every dollar in sales: the firm generates 30 cents in costs. the firm generates 30 cents in profit. the firm generates 70 cents in profit. the firm is not profitable. QUESTION 17 On the income statement, which of the following is a noncash deduction? cost of goods sold taxes selling general and administrative expenses depreciation QUESTION 18 One of the major disadvantages of a sole proprietorship is: that there is unlimited liability to the owner. the simplicity decision making. low organizational costs. low operating costs. QUESTION 19 The goal of financial management is to: maximize net income. maximize shareholder wealth. maximize working capital minimize costs