1. All data in this problem are for the Year 20xx. Expected revenu...

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1. All data in this problem are for the Year 20xx. Expected revenue = $800 Cash costs = $480 Depreciation = $20 Tax rate = 20% What is the NOPAT in Year 20xx? Enter inflows as a positive number and outflows as a negative number. 2. All data in this problem are for the Year 20xx. NOPAT = $450 Depreciation = $50 Capital expenditure = $60 Working capital increased by $40 What is the free cash flow to all capital in Year 20xx? Enter inflows as a positive number and outflows as a negative number. 3. The next two questions use the following data: A firm buys capital equipment for $1000 in Year 0. The annual depreciation, starting in Year 1, is $200. In Year 3, immediately after taking the third depreciation, the firm sells the equipment for $450. (a) What is the cash from asset sale? Enter inflows as a positive number and outflows as a negative number. (b) What is the profit from asset sale? 4. Based on the following balance sheet data compute working capital of the firm. Assume the firm needs $10 for operating cash. Current assets Current liabilities Cash $40 Accounts payable $50 Accounts receivable $80 Accrued expenses $20 Inventory $60 Short-term debt $45 5. The next three questions use the following data. A project has a life of 2 years, after which it will be shut down. The cost of capital is 10%. Additional project data are presented in the table below. Year 0 Year 1 Year 2 Capex $2000 Working capital $700 $600 Operating cash flow $2100 $1215 Working capital = Accounts receivable + Inventory - Accounts payable. The project requires no working capital at the end of Year 2. The cap-ex has no salvage value and no book value at the end of Year 2. (a) What is the free cash flow in Year 0? Enter inflows as a positive number and outflows as a negative number. (b) What is the free cash flow in Year 1? Enter inflows as a positive number and outflows as a negative number. (C) What is the free cash flow in Year 2? Enter inflows as a positive number and outflows as a negative number.

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