10. The cumulative, nondiscounted, before-tax cash position of a project is shown at right and should be used for problems 10-19. Assume straight line depreciation, a 10-year depreciation schedule, and no salvage value. The working capital ($M) is most nearly what value? (A) 0.12 (B) 2.3 (C) 3.0 (D) 3.7 20 20 15 10 5 Cumulative Cash Position, S million ° ° -5 - 1 -10 -15 2 3 4 5 6 7 8 9 10 11 12 Year

10. The cumulative, nondiscounted, before-tax cash position of a project is shown at right and should be used for problems 10-19. Assume straight line depreciation, a 10-year depreciation schedule, and no salvage value. The working capital ($M) is most nearly what value? (A) 0.12 (B) 2.3 (C) 3.0 (D) 3.7 20 20 15 10 5 Cumulative Cash Position, S million ° ° -5 - 1 -10 -15 2 3 4 5 6 7 8 9 10 11 12 Year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Give typed solution only What is the internal rate of return of a project costing $3,000; having after-tax cash flows of $1,500 in each of the two years of its two-year life; and a salvage value of $800at the end of the second year in addition to the $1,500 cash flow? (rounded to the nearest percentage) A. 13% B. 15% C. 16% D. 19%
1. Consider the below three investment projects generating cash flows as follows: Project 1 2 3 4 -500,000 -500,000 -500,000 А 1,000,000 -500,000 -500,000 -500,000 -500,000 B 550,000 750,000 -500,000 1,000,000 1,000,000 -500,000 Assume that the cost of capital is 10%. Use this cost of capital to discount (or inflate) all negative cash flows to the present time and all positive cash flows to period 1 in the below table. Then, calculate the IRR based on the cash flows of period 0 and 1. Project 1 IRR А B Using the above modified IRR, make investment decision for each project. Dose the modified IRR deliver correct decisions?
8
What is the payback period for a project with the following cash flows? Year 0 1 2 3 4 2.56 years O2.89 years 3.08 years 3.48 years Never Cash Flow -$75,000.00 $ 15,000.00 $ 23,000.00 $ 25,000.00 $ 25,000.00
heelpp
2) You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1 -$150 $20 $40 $60 $80 Project 2 -825 0 0 7,000 -6,500 Project 3 20 40 60 80 -245 For which of these projects is the IRR rule reliable?
Living Colour Company has a project available with the following cash flows: Year 0 1 2 Cash Flow -$ 32,830 8,390 10,130 14,540 16,170 11,180 If the required return for the project is 9.3 percent, what is the project's NPV? sin 4 5 Multiple Choice O $27,580.00 O $5,790.94 O $14,037.83 O $12,958.00 $14,809.14
7. Dudley Corp. have identified a project with the following cash flows: Year 1 2 3 4 Cash Flow $ 940 1,090 1,340 1,405 If the discount rate is 8 percent, what is the future value of the cash flows in year 4? If the discount rate is 11 percent, what is the future value of the cash flows in year 4? If the discount rate is 24 percent, what is the future value of the cash flows in year 4? Do not round intermediate calculations and round your final answer to 2 decimal places.
6.
am. 253.
Consider the following project: Period 0 1 2 3 Net cash flow −275 0 96.55 327.48 The internal rate of return is 17%. The NPV, assuming a 17% opportunity cost of capital, is exactly zero. Calculate the expected economic income and economic depreciation in each year. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)