QUESTION 1
1. ABC Company has a proposed project that will generate sales of 415 units annually at a selling price of $192 each. The fixed costs are $5,528 and the variable costs per unit are $59. The project requires $26,674 of equipment that will be depreciated on a straight-line basis to a zero book value over the 8-year life of the project. That is, depreciation each year is $26,674/8. The tax rate is 34 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.

QUESTION 2
1. ABC, Inc is considering the purchase of a new equipment. The equipment costs $35,949 and an additional $1,544 is needed to install it. The project will also require an initial $3,152 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.

QUESTION 3
1. ABC Company purchased $92,321 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $4,369. What is the After-tax Salvage Value if the tax rate is 36%?

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.

QUESTION 4
ABC Company purchased $88,165 of equipment 5 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $7,752. What is the After-tax Salvage Value if the tax rate is 38 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 4.46percent.
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 5
A project has an initial requirement of $212,438 for new equipment and $11,764 for net working capital. The installation costs are expected to be $10,915. 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 $85,134. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $85,279 and the cost of capital is 5% What is the project's NPV if the tax rate is 26%?
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 6
ABC, Inc. is considering the purchase of new equipment. The annual sales are expected to be $977,181, the annual variable costs are expected to be $90,753, the annual fixed costs are expected to be $85,387, the annual depreciation expenses are expected to be $127,054. Assuming a tax rate of 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.

QUESTION 7
ABC, Inc purchased some new machinery three years ago for $267,397. Today, it is selling this machinery for $71,487. What is the After-tax Salvage Value of the newmachinery? Assume that the tax rate is 35%.
The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 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.

QUESTION 8
A project has an initial requirement of $216,070 for new equipment and $13,450 for net working capital. The installation costs to get the new equipment in working condition are 6,672. 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 $126,610. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $79,799 and the cost of capital is 19% What is the project's NPV if the tax rate is 32%?
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 9
A project requires $353,406 of equipment that is classified as 7-year property. What is the depreciation expense in 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.

QUESTION 10
ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $834,582 and the total cash expenses are expected to be $372,390. The annual depreciation is $75,611 and the tax rate is 29.2%. 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.

QUESTION 11
A project requires $372,113 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.

QUESTION 12
ABC, Inc is planning the purchase of a new equipment which will cost $39,072. The project is expected to last for 7 years. The equipment will have a book value of $3,436 at the end of Year 7. The increase in net working capital is expected to be $3,262, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $10,885. What is the Total Cash Flow in Year 7 of the project if the equipment can be sold for $4,899 and the tax rate is 36%?
Note: In the last year of the project, the Total Cash Flow = Operating Cash Flow + Terminal 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.

QUESTION 13
ABC, Inc is planning the purchase of new equipment that costs $135,536. The project is expected to last for 14 years. Each year, the new project is expected to sell 183 units for $398 per unit. The variable costs are expected to $81 per unit and the fixed costs are expected to be $20,390. The equipment will be depreciated on a straight-line basis over the 14-year life of the project. That is, the depreciation each year will be $135,536/14. Assuming a tax rate of 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.

QUESTION 14
ABC, Inc., is considering purchase of a new equipment. The expected sales are expected to be $5,545,644. The annual cash operating expenses are expected to be $3,896,359. The annual depreciation is estimated to be $396,703 and the interest expense is estimated to be $209,604. If the tax rate is 34%, 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.

QUESTION 15
A project requires $350,572 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.

QUESTION 1 1. ABC Company has a proposed project that will generat...