Question 44 (0.5 points) Precise Machinery is analyzing a proposed project. The company expects to sell 2,100 units. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. The depreciation expense is $129,000. The sales price is estimated at $755 per unit. The tax rate is 25 percent. What is the operating cash flow? Question

44 options: 67975 337975 338975 370125

Question 45 (1 point) Spartan Skateboards, Inc., is considering buying a new piece of equipment that will quickly imprint Sparty's image on the top of the skateboard. The equipment will cost $2500, but is expected to increase sales by $1750 per year over the next 4 years. There is no additional Net Working capital needed, nor will the equipment have any salvage value. However, due to some environmental issues, the shop needs to spend $4800 after the project, i.e., 5 years from today to dispose the equipment properly. The owner of the shop requires a return of 8%. What is the Internal Rate of Return?

Question 45 options: 7.7% 7.3% 12.2% 6.3% There are multiple IRRs for a project of this type