optionals - chap 10

optionals - chap 10 - 10 Round all answers to whole...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
10 Round all answers to whole dollars. ________ 1. A proposed project is expected to decrease accounts receivable by $10,000, decrease inventory by $4,000, and increase accounts payable by $6,000. What is the amount of the initial cash flow for this project? a. -$12,000 b. $0 c. $8,000 d. $20,000 ________ 2. Last year, Bottlers, Inc. purchased land located beside their factory at a price of $1,500,000 plus $250,000 in real estate fees. Today, the land has a market value of $2,000,000. The company is now considering building a new warehouse on that land. The construction cost of the warehouse is estimated at $675,000. In addition, $90,000 worth of grading will be required to prepare the construction site. What is the initial cash flow of this project? a. -$2,515,000 b. -$2,765,000 c. -$3,015,000 d. -$4,515,000 ________ 3. You are considering a project that will generate sales of $89,000, costs of $56,000, and annual depreciation of $26,000. What is the value of the operating cash flow if the tax rate is 34 percent?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/27/2008 for the course FINC 450 taught by Professor Ddavidson during the Spring '08 term at Loyola Chicago.

Page1 / 2

optionals - chap 10 - 10 Round all answers to whole...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online