Problem 1 Intro A new project is expected to generate annual sales of $150,000 and annual costs of $142,500 (excluding depreciation). Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%. Part 1 What is NOPAT + depreciation in each year of operation? 0+ decimals Submit Attempt 1/2 for 10 pts.

7.3 q3  A project requires an increase of $1800 in Net Working Capital at the beginning of the project, which will be fully recovered after the completion of the project.  Equipment with a book value of $11,000 will be sold at the end of the project for a salvage value of $5,000.  The tax rate is 20%.  What is the incremental free cash flow in the year following the end of the project? a. $2000 b. $5600 c. $8000 d. $4400

out of question A company is considering a project that requires an initial cost of $8,000. The project will great dea net cash inflows of $100 in year one, $700 in year two, $6,000 in year three, $11,000 inyear four and $1 in year five. What is the NPV using 4% as the discount rate? NOTE: Enter amounts rounded to two decimals (e.g., 78.76 or 40.00) Net Cash Inflow Year 0 2 3 4 5 $100 $700 $6,000 $11,000 $12,000 NPV Total S $ $

What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of $15,000? Assume the investment can be depreciated for tax purposes straight-line over 6 years, the corporate tax rate is 21%, and the discount rate is 14%. Select one: a.−$15,560.04 b.$21,131.99 c.$3,411.14 d.$14,782.09

Required information A project has a first cost of $670,000, a salvage value of 27% of the first cost after 3 years, and annual (GI-OE) of $275,000. Assume the company has a Te of 37%. Determine the approximate after-tax rate of return (ROR). The after-tax rate of return (ROR) is determined to be

QUESTION 25 A new project will generate $190,000 in new sales per year. The project costs $1,000,000 and will be depreciated using a 7-year MACRS schedule. The cash operating costs are $76,000. If the tax rate is 37%, what is the third year's ONOCFt? $419,287 $173,290 $154,199 $136,533 Onone of the above

What is the annual equivalent worth of a project where (a) the initial investment is $50,000; (b) will have revenues of $8,000 per year; (c) annual cost of operation and maintenance of $1,200 and (d) a residual or salvage value of $2,000 after 15 years? Assume rate of return is 8%. A. $-41,200 B. $13,438 C. $6,800 D. $288 E. -$712 F. $3,600

5. A project costs 20,00,000 and yields annually a profit of Rs. 3,00,000 after depreciation @ 12½% but before tax at 50%. Calculate the pay-back period

Q3 7d 7. XYZ Co. is evaluating whether to invest in a project with the following information: Project cost = $950,000 Project life = five years Projected number of units sold per year = 10,000 Projected price per unit = $200 Projected variable cost per unit = 150 Fixed costs per year = $150,000 Required rate of return = 15% Marginal tax rate = 35% Assume straight-line depreciation to zero over five years, and ignore the half-year rule for accounting for depreciation.                      d.  Calculate the Degree of Operating Leverage (DOL) at the cash break-even, accounting break-even, and financial break-even sales quantities.

11. Find the capitalized cost of an equipment that costs P55,000.00 if the annual maintenance cost and operational cost is P10,000.00 and money worth 5% per annum. 270,000.00 250,000.00 12. How long in years will it take the money to triple its amount when deposited at the rate of 12% compounded monthly. 9.8 10 8.7 9.2 255,000.00