A capital project requires a $50,000 increase in working capital. It also requires equipment at a price of $200,000. It takes $20,000 to install the equipment and $15,000 to ship the equipment to the desired location. The income tax rate is 35% and equipment is depreciated for income tax purposes on a straight line basis. What is the project's initial cash flow? Group of answer choices A.200,000 B.120,000 C.285,000 D.235,000 E. 250,000

Given the data in the following table, what is the IRR of Project B?

The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted.   Project A  Project B  Project C Initial Cost      240,000.00     260,000.00     200,000.00 Expected life  5 5 4 Scrap value expected        10,000.00       15,000.00       10,000.00 Expected Cash Inflows:       End Year 1        85,000.00       95,000.00       45,000.00 End Year 2        70,000.00       70,000.00       65,000.00 End Year 3       65,000.00       55,000.00       95,000.00 End Year 4       60,000.00       50,000.00     100,000.00 End Year 5       50,000.00       50,000.00   The company estimates cost of capital is 18%. The table below shows the present value of $1 at 14%, 18% and 22%. Periods  14% 18% 22% 1 0.877 0.847 0.820 2 0.769 0.718 0.672 3 0.675 0.609 0.551 4 0.592 0.516 0.451 5 0.519 0.437 0.370 6 0.456 0.370 0.303 Required: Calculate:(b) The accounting rate of return for each…

Time, Co. has a project available with the following cash flows: Cash Flow -$ 31,190 13,170 14,740 Year 0 1 2 3 4 21,060 12,200 If the required return for the project is 9.9 percent, what is the project's NPV? Multiple Choice $19,687.63 $15,791.12 $8,863.54 $17,226.67