Eisenhower Communications is trying to estimate cash flows for a proposed project. The following information has been collected on the project: Equipment cost $10,000 Working capital investment $2,000 Revenue $10,000 Operating Expense (excluding depreciation) $6,000 Interest expense $2,000 Tax Rate 40% Salvage value $4,000 Project lifespan 4 years Year Depreciation Rate 1 33% 2 45% 3 15% 4 7% 32.) The cash flow for the end of the last year of the project (year 4) is: Question 32 options: $2,680 $7,080 $6,680 $5,080
Eisenhower Communications is trying to estimate cash flows for a proposed project. The following information has been collected on the project: Equipment cost $10,000 Working capital investment $2,000 Revenue $10,000 Operating Expense (excluding depreciation) $6,000 Interest expense $2,000 Tax Rate 40% Salvage value $4,000 Project lifespan 4 years Year Depreciation Rate 1 33% 2 45% 3 15% 4 7% 32.) The cash flow for the end of the last year of the project (year 4) is: Question 32 options: $2,680 $7,080 $6,680 $5,080
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Eisenhower Communications is trying to estimate cash flows for a proposed project. The following information has been collected on the project:
| Equipment cost | $10,000 |
| Working capital investment | $2,000 |
| Revenue | $10,000 |
| Operating Expense (excluding |
$6,000 |
| Interest expense | $2,000 |
| Tax Rate | 40% |
| Salvage value | $4,000 |
| Project lifespan | 4 years |
| Year | Depreciation Rate |
| 1 | 33% |
| 2 | 45% |
| 3 | 15% |
| 4 |
7% |
32.)
The cash flow for the end of the last year of the project (year 4) is:
Question 32 options:
|
|
$2,680 |
|
|
$7,080 |
|
|
$6,680 |
|
|
$5,080 |
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