Question 7 1 pts Consider an asset that costs $366,000 and is depreciated straight-line to zero over its six-year tax life. The asset is to be used in a five-year project. At the end of the project, the asset can be sold for $66,000. If the relevant tax rate is 40 percent, what is the after-tax cash flow from the sale of this asset? 66,000 61,000 64,000 3000 Question 8 1 pts The price of one country's currency expressed in terms of another country's currency is the: depository rate exchange rate foreign interest rate unit of currency time value of money Question 5 1 pts Which of these general types of cash flows is NOT relevant in a capital budgeting analysis? Revenues Financing Cost Inventory Costs Opportunity Cost Question 6 1 pts Which of the following may cause "erosion"? 1. After producing a successful shampoo, you decide to launch a new dish-washing detergent. 2. You begin selling coffee in new smaller sized, freshness-preserving foil pouches alongside your regular sizes of coffee cans. 3. You continue to sell your original golf ball, but introduce a new golf ball that "feels" the same as your old one yet flies further. 4. A grocery store owner adds on to the present store in order to remodel her bakery and add more floor space. 2 and 3 only 1.2.3, and 4 1.3, and 4 only 1 and 2 only 4 only Question 3 1 pts In a capital budgeting analysis, what does Recovery of NOWC represent? collecting the remaining book value on the original equipment purchase selling off (ie, salvaging) the original equipment purchase selling off remaining inventory, collecting our A/Rs, paying off our A/Ps investing in new inventory Question 4 1 pts Steve is fairly cautious when analyzing a new project and thus he projects the most optimistic, the most realistic, and the most pessimistic outcome that can reasonably be expected. Which type of analysis is Steve using? rationing analysis simulation analysis break-even analysis sensitivity analysis scenario analysis