Exam 3 - Practice Quiz for Project Cash Flows
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Arizona State University *
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Course
302
Subject
Finance
Date
Feb 20, 2024
Type
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2
Uploaded by toppingdog0964
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
18
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