Question: Consider the following cash flow statement. The required fields are calculated. Calculate the present value of the cash flow if the interest rate is 15%.
Consider the following cash flow statement. The required fields are calculated. Calculate the present value of the cash flow if the interest rate is 15%. 1 2 3 4 5 Revenues: Unit Price 50 50 50 50 50 Demand (units) 2000 2000 2000 2000 2000 Sales revenue 100000 100000 100000 100000 100000 Expenses: Unit variable cost 15 15 15 15 15 Variable cost 30000 30000 30000 30000 30000 Fixed cost 10000 10000 10000 10000 10000 Depreciation 17863 30613 21863 15613 5575 Taxable Income 42137 29387 38137 44387 54425 Income taxes (40%) 16855 11755 15255 17755 21770 Net Income 25282 17632 22882 26632 32655 Depreciation 17863 30613 21863 15613 5575 Investment activities Investment - 125000 Working capital 50000 50000 Salvage 40000 Gains tax -2611 Net cash flow Select one: O a. 100000 O b. 120000 O c. 108506 d. 8822 O e. 21 1090 Of. 130410
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