QUESTION 6 10 points Save Answer Delta Equipment is considering a 3-year project with an initial cost of $276,000. The project will not directly produce any sales but will reduce operating costs by $82,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are 1429, 2449, 1749, 1249, 0893, 0892, 0893, and 0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $135,000 before tax. The tax rate is 25 percent and the required return is 10 percent. An extra $57,000 of inventory will be required for the life of the project. What is the total cash flow for Year 3? $280,275.40 $248,519.30 $261,991.80 $274,833.60 $255,793.40 QUESTION 9 10 points Save Answer Suncas is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 20,000 units, +4 percent. The expected variable cost per unit is $12 and the expected fixed costs are $70,000. The fixed and variable cost estimates are considered accurate within a +5 percent range. The sales price is estimated at $18 a unit 5 percent. The project requires an initial investment of $192,000 for equipment that will be depreciated using the straight-line method to zero over the project's life. The equipment can be sold for $45,000 at the end of the project. The project requires $20,000 in net working capital for the three years. The discount rate is 10% percent and tax rate is 25 percent. What is the operating cash flow under the optimistic case scenario? $73,250 $96,128 $79,101 $89,247 $83,125 QUESTION 10 10 points Save Answer Abbey Company has compiled this information related to a new project: Initial investment: $460,000; Fixed costs: $256,000: Variable costs: $16 per unit; Selling price: $40 per unit; Discount rate: 13 percent; Project life: 5 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point? 18,547 18,018 17,520 17,008 16,655