## Transcribed Text

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.

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction
of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice.
Unethical use is strictly forbidden.