$($Dee Date April $9,2025)$

A proposed new investmest has projected sales of $$1,830,000.$ Veriable costs are $60\%$ of sales, and fixed conts are $$381,000$; depeeciation is $$277,000.$ Prepare a pro forma income statement aswming a tex rate of $21\%.$ What is de operating cash flow? Please use both the most coemmon approach and the tax alirld approach to compute it$.$

Dog Up$!$ Franks is looking at a new asaape syotes with an installed cost of $5580,000.$ This cost will be deprecisted straight$-$line to rere over the project's five$-$year life, at the end of which the sausage syutem can be sold for $$55,000$ in the market. The suasage system will ave the firm $$185,000$ per year in pretar operating costs, and the system requires an initial investment in net working copital of $531,000.$ If the tax rate is $21\%$ and the required rate of retum of the project is $10\%,$ what is the NPV of this project?

Five Stars Inc, is considering a new fouryear expasion project that requires an initial fixed asset investment of $4\mathrm{.}5$ million. The fixed asset will be depreciated straight$-$line so zero over is four$-$year tax life. However, the fird asset mill have a market value of $$310,000$ at the end of the project. The project is evtimated to sell the new product for $10,000$ units a year and the price per unit is $$265.$ The variable cost is $$84$ per unit and the fixed cost is $$50,000$ a year. Suppose the project requires an initial investenest in oet working capital of $$300,000$ and the net werking capien! will be fllty recovered at the end of the project. If the tax rate is $21\%$ and the required rate of return oe the project is $124$ k $,$ what is the project's NPV$?$

Five Stars Inc, is coesidering a new four$-$year eqpansion peoject that requires an initial fixed asset investment of $4\mathrm{.}5$ million. The fivd asset falls ieto the five$-$year MARCRS clas and will be deprecined ever its four$-$year tra life. Aho, the fived awet will lave a market value of $$310,000$ at the end of the project. The project is eitiesated to sell the new product for $10,000$ units a year and the price per unit is $5265.$ The variable cost is $$84$ per unit and the fixed cost is $$$0,000$ a year. Suppose the peopect reyeres an initial ievestment in net working capital of $5300,000$ and the eet woeking cepinal will he folly recovered at the end of the propet. If the tas rate is $21\%$ and the required rite of ntturn on the project is $1246,$ what is the project's NPV$7?$

Fiveyem MACRS

$\backslash$table$[[$Year$,$MACRS Percent$],[1,2000],[2,3200],[3,1920],[4,1157],[3,1151],[6,376]]$