Question 5 1 pts The tax-shield approach for calculating project operating cash flow does not allow you to take into account the CCA tax shield True O False Question 6 1 pts A change in net working capital is an example of an incremental cash flow. O True O False Question 7 1 pts The correct formula for computing the operating cash flow of a project is EBIT + D + T. O True O False Question 8 1 pts A company owns a building that is totally paid for. This building has been sitting idle for the past three years. Now the company is trying to analyze a project that would include the use of this building. Therefore, the value of the building should be included in that analysis. O True O False Question 9 1 pts A project will increase the sales of Joe's Workshop by $50,000 and increase expenses by $36,000. The equipment for the project will cost $30,000 and CCA will be straight-line over the 3-year life of the project. The company has a marginal tax rate of 35%. What is the operating cash flow of the project using the tax shield approach? $12,600 O $17,500 O $8,400 O $9.100 O $15,600 Question 10 1 pts The equipment required for a four year project costs $60,000 and belongs in a 20% CCA class. It will be sold for $7,000 at the termination of the project. The project generates additional operating income of $20,833. If the firm has a tax rate of 34% and a required return of 10%, what is the NPV? $2,842 $1,839 $2,261 $1,133 $265