Question 28 Initial investment of a project: $65 000 Net cash flows of the project: Year 1 $12 000 Year 2 $15 000 Year 3 $30 000 Year 4 $10 000 After-tax salvage value [at end of project] Cost of capital 15 per cent Refer to the information above. The payback period of the project is: 2.8 years 3.8 years 3.3 years 3 years Question 30 The present value of an ordinary annuity of $2800 each year for ten years, assuming an opportunity cost of 8 per cent, is: $27869 $12093 O $12537 $18788 Question 31 If EBIT = $260, Interest = $80, Tax = $20 and Depreciation = $50, then after tax operating cash flow equals $240 $290 $300 $210