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this is not a homework assignment, it is a practice sheet so please answer all of them correctly with explanations for a Like... QUESTION 15

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QUESTION 15 You recently purchased a computer for $5,000. You will depreciate it in 10 year to a value of 0. Suppose that you can sell this computer in year 5 for $4,000. What's the after-tax cash flow to the project associated with this sell (i.e. minus net capital spending) if tax rate is 10%? O 3,850 O 2,500 O 1,510 O 500 0 4,000 QUESTION 16 - Assume you have the following information about Vanover Manufacturing, Please calculate breakeven quantity Initial equipment cost is $20,000 - Price = 55 per unit: variable costs = $3 per unit -Fixed operating costs = $10,000 5 year life, straight-line depreciation to 0, no salvage value - Assume no taxes. K-2096 7.000 O 5,000 son QUESTION 17 The Army seeks bids on Multiple Use Digitizing Devices (MUDDs). They would like to purchase 4 units per year for 3 years. Manufacturing these units require variable costs are $10,000 per MUDD. Rent is $12,000 per year. The project requires $50,000 in equipment which you can sell for $10,000 after 3 years. You will depreciate the machine straight line to zero over 3 years. Making MUDDs will require a $10,000 increase in NWC, which will be offset at the end of the project.Tax rate is 34%, opportunity cost of capital is 15%. What is the minimum levels of OCF to achieve financial breakeven? 21,498 18.996 O 49,085 O 3,400 0 2,000 QUESTION 18 Ben and Jerry's has the following financial information: Total Long term Debt $16,669,000 Stockholders' Equity $89,392,000 Beta 1.92 3-month Treasury Bill 1.62% Historical Risk Premium 7% Interest Expense $1,634,000 Tax rate 34% What is the WACC for Ben and Jerry's? QUESTION 19 Suppose that you recently came a cross an investment product where you will need to pay $500 upfront. In return, you will receive $120 per year for the next 10 years. What is the internal rate of return? 20% 24% 18% 10% 7% QUESTION 20 HH Companies has identified two mutually exclusive projects, Project A has cash flows of $40,000, $21,200, $16,800, and $14,000 for Years 0 to 3, respectively, Project B has a cost of $40,000 and annual cash inflows of $25,500 for 2 years. At what rate would you be indifferent between these two projects? 16.34 percent -12.72 percent 9.41 percent 5.70 percent 8:28 percent QUESTION 21 The Dry Dock is considering a project with an initial cost of $118,400. The project's cash inflows for years 1 through 3 are $37,200, $54,600, and $46,900, respectively. What is the IRR of this project? 8.42 percent 8.04 percent 7.48 percent 8.22 percent 8.56 percent

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