As a member of Apache Oil Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Sales revenues, each year Depreciation Other operating costs Interest expense Tax rate O a. $16,351 O b. $17,212 O c. $18,118 O d. $19,071 O e. $20,075 $42,500 $10,000 $17,000 $4,000 35.0%

You have been asked to assess whether it makes sense for CASTEC INC. to invest in a new telecom investment. The initial investment is expected to be S 60 million and the project is expected to generate income for the next 10 years, with the income statement below providing a measure of revenues and expenses for the project. Revenues Cost of Goods Sold Operating Expenses Depreciation |EBIT |-Interest Expenses |EBT Taxes @ 30% Net Income $28,000,000 $12,000,000 $6,000,000 $5,000,000 $5,000,000 $2,000,000 $3,000,000 S 900,000 $2,100,000 If the cost of capital for CASTEC INC. is 12% should the company invest in this project? Show all your work and justify your recommendation to receive any credit.

As assistant to the CFO of XYZ Inc., you must estimate the Year 1 cash flow for a project with the following data.  What is the Year 1 cash flow? Sales Revenue $8,000 Depreciation $3,500 Operating Expenses $4,000 Tax Rate 40%

First United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows:   BranchOfficeExpansion ComputerSystemUpgrade ATMKioskExpansion Amount to be invested $686,053   $516,654   $295,458   Annual net cash flows:               Year 1 411,000   288,000   177,000     Year 2 382,000   259,000   122,000     Year 3 349,000   230,000   89,000     Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1.  Assuming that the desired rate of return is 20%, prepare a net present value analysis for each project. Use the…

Subject: acounting

Romanos Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Laura Berenstein​, staff analyst at Romanos​, is preparing an analysis of the three projects under consideration by Chester Romanos​, the​ company's owner.   Data Table   A B C D 1   Project A Project B Project C 2 Projected cash outflow       3 Net initial investment $3,000,000 $2,100,000 $3,000,000 4 Projected cash inflows       5 Year 1 $1,200,000 $1,200,000 $1,700,000 6 Year 2 1,200,000 600,000 1,700,000 7 Year 3 1,200,000 500,000 200,000 8 Year 4 1,200,000   100,000 9 Required rate of return 10% 10% 10%       1. Because the​ company's cash is​ limited, Romanos thinks the payback method should be used to choose between the capital budgeting projects.   a. What are the…

Halls Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Laura Bentley​, staff analyst at Halls​, is preparing an analysis of the three projects under consideration by Caden Halls​, the​ company's owner. Data Table   A B C D 1   Project A Project B Project C 2 Projected cash outflow       3 Net initial investment $3,000,000 $2,100,000 $3,000,000 4 Projected cash inflows       5 Year 1 $1,200,000 $1,200,000 $1,700,000 6 Year 2 1,200,000 600,000 1,700,000 7 Year 3 1,200,000 500,000 200,000 8 Year 4 1,200,000   100,000 9 Required rate of return 6% 6% 6   1.. Calculate the payback period for each of the three projects. Ignore income taxes. Using the payback​ method, which projects should Halls ​choose?. Ignore income taxes. ​(Round your answers to…

Pls show proper steps correctly with explanation.

A firm has projected the following financials for a possible project: YEAR Sales Cost of Goods S&A Depreciation Investment in NWC Investment in Gross PPE 0 1,130.00 105,468.00 1 132,716.00 Submit 549.00 2 62,780.00 62,780.00 30,000.00 30,000.00 30,000.00 21,093.60 21,093.60 21,093.60 Answer format: Currency: Round to: 2 decimal places. 3 132,716.00 132,716.00 132,716.00 549.00 What is the NPV of the project? (Hint: Be careful about rounding the WACC here!) 4 62,780,00 62,780.00 62,780.00 30,000.00 549.00 21,093.60 549.00 5 132,716.00 The firm has a capital structure of 37.00% debt and 63.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 15.00%. The tax rate facing the firm is 38.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) 30,000.00 21,093.60 549.00

2. Calculating Project NPV The Fleming Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 22 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Investment Sales revenue Operating costs Depreciation Net working capital spending Year 0 $32,800 450 Year 1 Year 2 Year 3 Year 4 $14,200 2,100 8,200 175 $15,900 $15,700 2,100 2,100 8,200 8,200 250 275 $12,900 2,100 8,200 ? a. Compute the incremental net income of the investment for each year. b. Compute the incremental cash flows of the investment for each year. c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project?