Finance hwork

QUESTION 1

1. A project has an initial requirement of $199,615 for new equipment and $9,833 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $136,094. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $99,835 and the cost of capital is 5% What is the project's NPV if the tax rate is 27%?

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

1. A project has an annual operating cash flow of $15,714. Initially, this 4-year project required $4,653 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment will have a book value of $2,936 at the end of year 4. What is the total cash flow for year 4 of the project if the equipment can be sold for $6,121 and the tax rate is 29%?

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

1. A project requires $109,506 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.