Quiz 2 - Question 1 1 out of 1 points Interest Expense is a...

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Question 1 1 out of 1 pointsInterest Expense is a type of incremental cash flow that should be included in all capital-budgeting decisions.Selected Answer:FalseAnswers: True False
Question 2 1 out of 1 pointsABC, Inc. is considering purchase of a new equipment. The sales are expected to be $870,012 and the total cash expenses are expected to be $461,986. The annual depreciation is $49,003 and the tax rate is 29.1%. 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 3
0 out of 1 pointsA project has an initial requirement of $204,860 for new equipment and $12,899 for net working capital. The installation costs are expected to be $14,583. The fixed assets will be depreciated to a zerobook value over the 4-year life of the project and have an estimated salvage value of $131,757. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $88,153 and the cost of capital is 6% What is the project's NPV if the tax rate is 31%? Enter your answer rounded off to two decimal points. Do not enter $ orcomma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
Question 4 1 out of 1 pointsABC, Inc., is considering purchase of a new equipment. The expected sales are expected to be $6,794,560. The annual cash operating expenses are expected to be $3,210,943. The annual depreciation is estimated to be $419,846 and the interest expense is estimated to be $169,163. If the tax rate is 25%, 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.

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