Question: Please your help with the attached 18 questions. QUESTION 1 A project has an initial requirement of $237,049 for new equipment and $14,802 for net
Please your help with the attached 18 questions.
QUESTION 1 A project has an initial requirement of $237,049 for new equipment and $14,802 for net working capital. The installation costs to get the new equipment in working condition are 4,678. 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 $125,962. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $82,751 and the cost of capital is 7% 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 2 ABC Company purchased $44,595 of equipment 5 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $10,439. What is the aftertax cash flow from this sale if the tax rate is 31 percent? 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 3 ABC Company has a proposed project that will generate sales of 332 units annually at a selling price of $278 each. The fixed costs are $6,744 and the variable costs per unit are $29. The project requires $33,280 of equipment that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $6,900 and the tax rate is 28 percent. What is the operating cash flow for year four? 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 ABC Corporation is considering an expansion project. The necessary equipment could be purchased for $27,519 and shipping and installation costs are another $1,429. The project will also require an initial $5,165 investment in net working capital. The company's tax rate is 40%. 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. 1 points QUESTION 5 A project requires $238,649 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 6 Sunk costs are a type of incremental cash flow that should be included in all capital-budgeting decisions.True False 1 points QUESTION 7 ABC Compay has the following projections for Year 1 of a capital budgeting project. Year 1 Incremental Projections: Sales $618,196 Variable Costs $130,263 Fixed Costs $35,467 Depreciation Expense $93,218 Tax Rate 29% Calculate the operating cash flow for Year 1. 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 $234,433 for new equipment and $9,764 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $90,213. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $76,816 and the cost of capital is 10% 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 12.35 in the answer box. 1 points QUESTION 9 A project requires $222,307 of equipment that is classified as 7-year property. What is the depreciation expense in 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 10 ABC Company purchased $19,706 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $5,290. What is the aftertax cash flow from this sale if the tax rate is 25 percent? 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 11 Which of the following cash flows are NOT considered in the calculation of the initial outlay for a capital investment proposal? All of the above should be considered Cost of Installing new equipment Increase in net working capital requirements Interest expense related to financing a project Equipment Cost 1 points QUESTION 12 The net working capital invested in a project is generally: a sunk cost. recovered at the end of the project. depreciated to a zero balance over the life of the project. recovered at the start of the project. an opportunity cost. 1 points QUESTION 13 A project has an annual operating cash flow of $11,320. Initially, this 4-year project required $4,330 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment will have a book value of $2,410 at the end of year 4. What is the total cash flow for year 4 of the project if the equipment can be sold for $5,495 and the tax rate is 25%? 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 ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $5,523,211, total cash expenses $2,973,652, depreciation $303,511, taxes 29%, interest expense, $200,000. What are the operating cash flows?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 15 A project requires $459,797 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 16 ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $652,213, total cash expenses $322,556, depreciation $57,458, taxes 38%. What are the operating cash flows?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 has a proposed project which will generate sales of 130 units at a selling price of $253 each. The fixed costs are $15,106 and the variable costs per unit are $69. The project requires $114,415 of machinery which will be depreciated on a straightline basis over the 5year life of the project. The tax rate is 33%. What is the operating cash flow for year 5?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. QUESTION 18 ABC Company purchased some new equipment 2 years ago for $392,323. Today, it is selling this equipment for $30,301. What is the aftertax cash flow from this sale if the tax rate is 35 percent? The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent
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