Question: Blackboard Remaining Time: 55 minutes, 47 seconds Question Completion Status: QUESTION 4 XYZ. Is thinking about opening a new store. The new store would require
Blackboard Remaining Time: 55 minutes, 47 seconds Question Completion Status: QUESTION 4 XYZ. Is thinking about opening a new store. The new store would require an initial investment of $800,000 and is expected to be in operation for 3 years. MACRS depreciation would be used where the depreciation rates in years 1.2.2 and 4 are 33.33M, MM, 14.2 and 741%, respectively. For each year of the project Auburn expects relevant revenue associated with the new store to be 5480.000 and relevant costs associated with the new store to be $210.000. The tax rate is 40 percent What is X i X equals (the operating cash flow (OCF) associated with the Tuscaloosa store expected in year 2 of the project plus (the OCF associated with the Tuscaloosa store expected in year 3 of the project) a. 5572,864 (plus or minus $100) b. 5445,216 (plus or minus $100) C. 5513,632 (plus or minus 5100) d. 1782,288 (plus or minus 51001 e. None of the above is within $100 of the correct answer Blackboard Remaining Time: 55 minutes, 47 seconds Question Completion Status: QUESTION 4 XYZ. Is thinking about opening a new store. The new store would require an initial investment of $800,000 and is expected to be in operation for 3 years. MACRS depreciation would be used where the depreciation rates in years 1.2.2 and 4 are 33.33M, MM, 14.2 and 741%, respectively. For each year of the project Auburn expects relevant revenue associated with the new store to be 5480.000 and relevant costs associated with the new store to be $210.000. The tax rate is 40 percent What is X i X equals (the operating cash flow (OCF) associated with the Tuscaloosa store expected in year 2 of the project plus (the OCF associated with the Tuscaloosa store expected in year 3 of the project) a. 5572,864 (plus or minus $100) b. 5445,216 (plus or minus $100) C. 5513,632 (plus or minus 5100) d. 1782,288 (plus or minus 51001 e. None of the above is within $100 of the correct
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