HELLO, PLEASE REVIEW THE QUESTIONS BEING ASKED IF YOU CANNOT CORRECTLY ANSWER THESE QUESTIONS, PLEASE PASS UP THE ASSIGNMENT PLEASE UPLOAD THE DOC SHOWING WORK THIS ASSIGNMENT IS DUE 01 19 2017 BY 8PM QUESTION 1 ABC, Inc is considering the purchase of new equipment The annual sales are expected to be $905,610, the annual variable costsare expected to be $113,809, the annual fixed costs are expected to be $28,762, the annual depreciation expenses are expected to be $66,008 Assuming a tax rate of 26 5 , what is the operating cash flow Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 2 A project requires$335,180of equipment that is classified as7 year property What is the depreciation expense in Year5given the following MACRS depreciation allowances,starting with year one 14 29,24 49,17 49,12 49,8 93,8 92,8 93,and4 46percent Enter your answer rounded off to two decimal points Do not enter$or comma in the answer box For example,if your answer is$12 345then enter as12 35in the answer box 1 points QUESTION 3 A project requires $187,111 of equipment that is classified as 7 year property What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one 14 29, 24 49, 17 49, 12 49, 8 93, 8 92, 8 93, and 4 46 percent Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 4 Which of the following cash flows are NOT considered in the calculation of the initial outlay for a capital investment proposal Sunk costs Increase in net working capital requirements All of the above should be considered Cost of Installing new equipment After taxsalvagevalueofoldequipment 1 points QUESTION 5 ABC,Inc purchased some new machinerythreeyears ago for$348,597 Today,it is selling this machinery for$54,505 What is the After tax Salvage Value ofthenewmachinery Assumethat thetax rate is20 The MACRS allowance percentages are as follows,starting with Year1 20 00,32 00,19 20,11 52,11 52,and5 76percent Enter your answer rounded off to two decimal points Do not enter$or comma in the answer box For example,if your answer is$12 345then enter as12 35in the answer box 1 points QUESTION 6 Interest Expense is a type of incremental cash flow that should be included in all capital budgeting decisions TrueFalse 1 points QUESTION 7 ABC, Inc , is consideringpurchase of a new equipment The expected sales are expected to be $5,988,380 The annual cash operating expenses are expected to be $3,425,021 The annual depreciation is estimated to be $671,893 and the interest expense is estimated to be $227,614 If the tax rate is 35 , what is the operating cash flow Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 8 A project has an initial requirement of $212,907 for new equipment and $14,242 for net working capital The installation costs to get the new equipment in working condition are 6,106 The fixed assets will be depreciated to a zero book value over the 5 year life of the project and have an estimated salvage value of $105,065 All of the net working capital will be recouped at the end of the project The annual operating cash flow is $116,381 and the cost of capital is 10 What is the project's NPV if the tax rate is 35 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 9 ABC Company purchased$56,449of equipment5years ago The equipment is7 year MACRS property The firm is selling this equipment today for$9,553 What is the After taxSalvageValueif the tax rate is28percent The MACRS allowance percentages are as follows,commencing with year one 14 29,24 49,17 49,12 49,8 93,8 92,8 93,and4 46percent Enter your answer rounded off to two decimal points Do not enter$or comma in the answer box For example,if your answer is$12 345then enter as12 35in the answer box 1 points QUESTION 10 ABC,Inc is planning the purchase of new equipment that costs $129,844 The project is expected to last for 10 years Each year, the new project is expected to sell 148 units for $486 per unit The variable costs are expected to $80 per unit and the fixed costs are expected to be $22,264 The equipment will be depreciated on a straight line basis over the 10 year life of the project That is, the depreciation each year will be $129,844 10 Assuming a tax rate of27 , what is the operating cash flow Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 11 ABC Company purchased $48,456 of equipment 4 years ago The equipment is 7 year MACRS property The firm is selling this equipment today for $3,778 What is the After taxSalvage Value if the tax rate is 31 The MACRS allowance percentages are as follows, commencing with year one 14 29, 24 49, 17 49, 12 49, 8 93, 8 92, 8 93, and 4 46 percent Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 12 ABC, Inc is planning the purchase of a new equipment which will cost $26,007 The project is expected to last for 9 years Theequipment will have a book value of $3,661 at the end of Year 9 The increase in net working capital is expected to be $2,741, all of which will be recouped at the end of the project The project is expected to have annual operating cash flows of $13,857 What is the Total Cash Flow in Year 9 of the project if the equipment can be sold for $6,341 and the tax rate is 37 Note In the last year of the project, the Total Cash Flow Operating Cash Flow Terminal Cash FlowEnter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 13 ABC Company has a proposed project that will generate sales of 303 units annually at a selling price of $253 each The fixed costs are $7,539 and the variable costs per unit are $68 The project requires $39,652 of equipment that will be depreciated on a straight line basis to a zero book value over the 13 year life of the project That is, depreciation each year is $39,652 13 The tax rate is 30 percent What is the operating cash flow Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 14 Which ofthefollowingcalculatestheeffectontheNPV of changesinoneoutputvariableatatime MonteCaroSimulation ProfitabilityIndex Scenarioanalysis Sensitivity analysis OpportunityAnalysis 1 points QUESTION 15 A project has an initial requirement of $212,574 for new equipment and $8,320 for net working capital The installation costs are expected to be $19,483 The fixed assets will be depreciated to a zero book value over the 4 year life of the project and have an estimated salvage value of $116,116 All of the net working capital will be recouped at the end of the project The annual operating cash flow is $64,250 and the cost of capital is 5 What is the project's NPV if the tax rate is 29 Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35in the answer box 1 points QUESTION 16 A project requires $360,566 of equipment that is classified as 7 year property What is the book value of this asset at the end of year 5 given the following MACRS depreciation allowances, starting with year one 14 29, 24 49, 17 49, 12 49, 8 93, 8 92, 8 93, and 4 46 percent Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 17 ABC, Inc is considering purchaseof a new equipment The sales are expected to be $827,403 and the total cash expenses are expected to be $430,383 The annual depreciation is $45,022 and the tax rate is 33 6 What is the operating cash flow Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box 1 points QUESTION 18 ABC, Incis considering the purchase of a new equipment The equipment costs $47,287 and an additional $1,201 is needed to install it The project will also require an initial $7,718 investment in net working capital The equipment will be depreciated straight line to zero over a five year life What is the project's initial investment outlay Enter your answer rounded off to two decimal points Do not enter $ or comma in the answer box For example, if your answer is $12 345 then enter as 12 35 in the answer box

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Question: HELLO, PLEASE REVIEW THE QUESTIONS BEING ASKED. IF YOU CANNOT CORRECTLY ANSWER THESE QUESTIONS, PLEASE PASS UP THE ASSIGNMENT. PLEASE UPLOAD THE DOC SHOWING WORK.

HELLO, PLEASE REVIEW THE QUESTIONS BEING ASKED. IF YOU CANNOT CORRECTLY ANSWER THESE QUESTIONS, PLEASE PASS UP THE ASSIGNMENT. PLEASE UPLOAD THE DOC SHOWING WORK. THIS ASSIGNMENT IS DUE 01/19/2017 BY 8PM.

QUESTION 1

ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $905,610, the annual variable costsare expected to be $113,809, the annual fixed costs are expected to be $28,762, the annual depreciation expenses are expected to be $66,008. Assuming a tax rate of 26.5%, what is the operating cash flow?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 2

A project requires$335,180of equipment that is classified as7-year property.What is the depreciation expense in Year5given the following MACRS depreciation allowances,starting with year one:14.29,24.49,17.49,12.49,8.93,8.92,8.93,and4.46percent? Enter your answer rounded off to two decimal points.Do not enter$or comma in the answer box.For example,if your answer is$12.345then enter as12.35in the answer box.

1 points

QUESTION 3

A project requires $187,111 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 4

Which of the following cash flows are NOT considered in the calculation of the initial outlay for a capital investment proposal?

Sunk costs

Increase in net working capital requirements

All of the above should be considered

Cost of Installing new equipment

After-taxsalvagevalueofoldequipment

1 points

QUESTION 5

ABC,Inc purchased some new machinerythreeyears ago for$348,597.Today,it is selling this machinery for$54,505.What is the After-tax Salvage Value ofthenewmachinery?Assumethat thetax rate is20%. The MACRS allowance percentages are as follows,starting with Year1:20.00,32.00,19.20,11.52,11.52,and5.76percent. Enter your answer rounded off to two decimal points.Do not enter$or comma in the answer box.For example,if your answer is$12.345then enter as12.35in the answer box.

1 points

QUESTION 6

Interest Expense is a type of incremental cash flow that should be included in all capital-budgeting decisions.TrueFalse

1 points

QUESTION 7

ABC, Inc., is consideringpurchase of a new equipment. The expected sales are expected to be $5,988,380. The annual cash operating expenses are expected to be $3,425,021. The annual depreciation is estimated to be $671,893 and the interest expense is estimated to be $227,614. If the tax rate is 35%, what is the operating cash flow?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 8

A project has an initial requirement of $212,907 for new equipment and $14,242 for net working capital. The installation costs to get the new equipment in working condition are 6,106. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $105,065. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $116,381 and the cost of capital is 10% What is the project's NPV if the tax rate is 35%?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 9

ABC Company purchased$56,449of equipment5years ago.The equipment is7-year MACRS property.The firm is selling this equipment today for$9,553.What is the After-taxSalvageValueif the tax rate is28percent?The MACRS allowance percentages are as follows,commencing with year one:14.29,24.49,17.49,12.49,8.93,8.92,8.93,and4.46percent.Enter your answer rounded off to two decimal points.Do not enter$or comma in the answer box.For example,if your answer is$12.345then enter as12.35in the answer box.

1 points

QUESTION 10

ABC,Inc is planning the purchase of new equipment that costs $129,844. The project is expected to last for 10 years. Each year, the new project is expected to sell 148 units for $486 per unit. The variable costs are expected to $80 per unit and the fixed costs are expected to be $22,264. The equipment will be depreciated on a straight-line basis over the 10-year life of the project.That is, the depreciation each year will be $129,844/10. Assuming a tax rate of27%, what is the operating cash flow?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 11

ABC Company purchased $48,456 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $3,778. What is the After-taxSalvage Value if the tax rate is 31%? The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 12

ABC, Inc is planning the purchase of a new equipment which will cost $26,007. The project is expected to last for 9 years. Theequipment will have a book value of $3,661 at the end of Year 9.The increase in net working capital is expected to be $2,741, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $13,857.What is the Total Cash Flow in Year 9 of the project if the equipment can be sold for $6,341 and the tax rate is 37%?Note: In the last year of the project, the Total Cash Flow = Operating Cash Flow + Terminal Cash FlowEnter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 13

ABC Company has a proposed project that will generate sales of 303 units annually at a selling price of $253 each. The fixed costs are $7,539 and the variable costs per unit are $68. The project requires $39,652 of equipment that will be depreciated on a straight-line basis to a zero book value over the 13-year life of the project. That is, depreciation each year is $39,652/13. The tax rate is 30 percent.What is the operating cash flow?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 14

Which ofthefollowingcalculatestheeffectontheNPV of changesinoneoutputvariableatatime?

MonteCaroSimulation

ProfitabilityIndex

Scenarioanalysis

Sensitivity analysis

OpportunityAnalysis

1 points

QUESTION 15

A project has an initial requirement of $212,574 for new equipment and $8,320 for net working capital. The installation costs are expected to be $19,483. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $116,116. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $64,250 and the cost of capital is 5% What is the project's NPV if the tax rate is 29%?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35in the answer box.

1 points

QUESTION 16

A project requires $360,566 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 17

ABC, Inc. is considering purchaseof a new equipment. The sales are expected to be $827,403 and the total cash expenses are expected to be $430,383. The annual depreciation is $45,022 and the tax rate is 33.6%. What is the operating cash flow?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.For example, if your answer is $12.345 then enter as 12.35 in the answer box.

1 points

QUESTION 18

ABC, Incis considering the purchase of a new equipment. The equipment costs $47,287 and an additional $1,201 is needed to install it. The project will also require an initial $7,718 investment in net working capital. The equipment will be depreciated straight-line to zero over a five-year life. What is the project's initial investment outlay?Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

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