Consider the following financial data for an investment project:• Required capital investment at n = 0: $ 100,000• Project service life:  10 years• Salvage value at n = 10: $15,000• Annual revenue: $150.000• Annual O&M costs (not including depreciation): $50.000• Depreciation method for tax purpose: seven-year MACRS• In come tax rate: 40%.Determine the project cash flow at the end of year 10.(a) $69.000(b) $73.000(c) $66.000(d) $67.000

Consider the following investment projects for SDL Engineering. All of the projects have a three-year investment life: Project’s Cash Flow ($) Time (n) Project A Project B Project C Project D 0 -$1,500 -$1,200 -$1,600 -$3,000 1 0 $600 -$1,800 $800 2 0 $800 $800 $1,900 3 $3,000 $1,500 $2,500 $2,300 Compute the Net Present worth of each project where interest rate is 9%. Which project do you recommend based on the NPW? Other than the NPW, why else would you recommend this project? (you will be using the same rate that was for part A for this part. Calculate the IRR for each project Show all workings in excel

With project cost of $10000, profits after depreciation (straight line method) and tax for its lifetime of 5 years are estimated at $1000, $1000, $3000,$4000 and $5000 respectively. The cost of capital is 12% and discount factors at 12%, for the first five years are 0.89, 0.80, 0.71, 0.64, and 0.57 respectively. The IRR of the project is   10%   8.57%   9.47%   9%

A project has annual depreciation of $17,100, costs of $89,300, and sales of $129,500. The applicable tax rate is 40 percent. What is the operating cash flow? Multiple Choice $22,920 $30,960 $84,540 $34,380 $24,120

A project requires an increase of $2100 in Net Working Capital at the beginning of the project, which will be fully recovered after the completion of the project.  Equipment with a book value of $11,000 will be sold at the end of the project for a salvage value of $6,000.  The tax rate is 20%.  What is the incremental free cash flow in the year following the end of the project? Question 3Answer a. $9100 b. $7100 c. $4900 d. $2900

A two-year project has sales of $582,960, cash costs of $411,015, and depreciation expense of $68,109. The tax rate is 24 percent and the discount rate is 12 percent. What is the amount of the annual depreciation tax shield? O $23,606.67 O $16,346.16 O $47,213.34 O $26,210.01 A Moving to another question will save this response. Question 12 of 30

A project that provides annual cash flows of $20,000 for 6 years costs $63,000 today. Determine the IRR for this project. Show answer using excel function.

The following data are from an after-tax cash flow analysis in year 1 for anew MACRS 5-year property. How much money would be saved in year 1 if 100% bonus depreciation is used? Initial Investment = $180,000 Regular MACRS Depreciation Deduction in Year 1 = $36,000 Before-Tax-and-Loan Cash Flow = $280,000 Loan Principal Payment = $17,500 Interest on Loan = $5,650. a. $30,240 b. $75,600  c. $37,800 d. $36,000.

he cash flows associated with a public works project in Buffalo, New York, are shown. Use the modified B/C ratio at a discount rate of 5% per year to determine the economic justification.   First cost, $ 30,000,000 AW of benefits, $/year 7,700,000 AW of disbenefits, $/year 1,700,000 M&O costs, $/year        1,525,000 Life of project, years 30   The modified B/C ratio is  . The project is economically         (Click to select) justified not justified  .

Consider the following project balances for a typical investment project with athe service life of five years: (a) Fill in the blanks by constructing the original cash flows of the project anddetermining the terminal balance.(b) Determine the interest rate used in the project-balance calculation, andcompute the present worth of this project at the computed interest rate.