1. A company is evaluating a new 5-year project. A cash flows analysis on the project reveals that during the first year, the project has projected sales of $132,000, costs of $68,3000, and depreciation of $7,600. The tax rate is 35 percent. Calculate operating cash flow for the year. (Do not include the dollar signs ($). Round your answers to the nearest whole dollar amount.

2. You have the following information on the cash flows of a project M. Compute the NPV for the project if the cost of capital is 14%

Year 0, project M ($58,000)

Year 1, Project M 17,000

Year 2, Project M 17,000

Year 3, Project M 21,000

Year 4, Project M 21,000

Year 5, Project M 26,000 ^

3.

Bat Company's BBB 10% bonds have a face value of $1,000 and pay interest semi-annually. They mature in 20 years, and their YTM is currently 16%. What is the price of a Bat Company Bond?