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1) MBC Investment Company invest $ 4,000,000 to clear a land for the purpose of setting a young trees, the trees will have 15 years perfect life.

1) MBC Investment Company invest $ 4,000,000 to clear a land for the purpose of setting a young trees, the trees will have 15 years perfect life.
After 15 years MBC will sell the land at an expected price of $8,00,000.
* What is the MBC expected rate of return (interest rate)?


2)- American Car Corporation expected to have sales of $10,000,000 the cost (Expenses) other than depreciation expected to be 75% of sales, the depreciation is $1,500,000.
All sales will be collected in cash, other costs other than depreciation will be paid in one year, and the tax rate is 40%.
* What is the company net income?
* What is the company Net Cash Flow?
* Suppose the congress change the tax Rate by additional of 5%.
- What is the company Net Income?
* What is the company net cash flow?

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