Exam 3 - Practice Quiz for Project Cash Flows

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School

Arizona State University *

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Course

302

Subject

Finance

Date

Feb 20, 2024

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pdf

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2

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Submitted Apr 18, 2023 at 11:49pm Question 1 0 / 1 pts Cactus, Inc., had revenues of $81 million, cash operating expenses of $25 million, and non-cash depreciation expense of $18 million during the year. Also during the same year, the firm purchased $16 million of additional equipment during the year while increasing its working capital investment by $12 million. The tax rate for Cactus is 25%. What is Cactus' free cash flow for the year? Answer to the nearest $0.01 million You Answered 6 Correct Answer 18.5 Question 2 0 / 1 pts Sonora, Inc., had revenues of $20 million, cash operating expenses of $10 million, and a non-cash depreciation expense of $4 million during 2008. The firm purchased $2 million of additional equipment during the year while increasing its working capital investment by $1 million. The firm had $2 million in interest expense. The tax rate for Sonora is 40 percent. What is Sonora's free cash flow for 2008? You Answered $3,400,000 $5,600,000 $8,600,000 Correct Answer $4,600,000 Question 3 0 / 1 pts Acme, Inc., had revenues of $71 million, cash operating expenses of $28 million, and non-cash depreciation expense of $15 million during the year. Also during the same year, the firm purchased $11 million of additional equipment while also increasing its working capital investment by $7 million. Additionally, the firm had $8 million in interest expense. The tax rate for Acme is 25%. What is Acme's free cash flow for the year? Answer to the nearest $0.01 million You Answered 6 Correct Answer
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