B 25045 c 26297 d 27612 e 28993 question 9 question

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B$25,045C$26,297D$27,612E$28,993QUESTION:9[QUESTION BANK ID:269624]TYPE:MULTIPLE CHOICECORRECTJazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can benegative, in which case it will be rejected.WACC:14.00%Year01234Cash flows-$1,200$400$425$450$475
QUESTION:10[QUESTION BANK ID:269477]TYPE:MULTIPLE CHOICECORRECTFitzgerald Computers is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless,and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life.What is the project's Year 1 cash flow?Equipment cost (depreciable basis)$65,000Straight-line depreciation rate33.333%Sales revenues, each year$60,000Operating costs (excl. deprec.)$25,000Interest Expense$4,000Tax rate35.0%

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