MC algo 10-12 Calculating OCF You have calculated the pro forma net income for a new project to be $46,410. The incremental taxes are $23,380 and incremental depreciation is $17,440. What is the operating cash flow? Multiple Choice $63,850 $28,970 $87,230 $46,410 $69,790

MC algo 10-12 Calculating OCF You have calculated the pro forma net income for a new project to be $46,410. The incremental taxes are $23,380 and incremental depreciation is $17,440. What is the operating cash flow? Multiple Choice $63,850 $28,970 $87,230 $46,410 $69,790

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

MC algo 10-12 Calculating OCF

You have calculated the pro forma net income for a new project to be $46,410. The incremental taxes are $23,380 and incremental depreciation is $17,440. What is the operating cash flow?

Multiple Choice

$63,850
$28,970
$87,230
$46,410
$69,790

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ES Question 14 What is the IRR for the following project if its initial after-tax cost is $5,000,000 and is expected to provide an after-tax operating cash outflow of -$1,800,000 in year 1, followed by inflows of $2,900,000 in year 2, $0 in year 3, $2,700,000 in year 4, and $2,300,000 in year 5? O 5.83% O 31.53% O None of the four possible given answer is correct 11.44% O 9.67%
Year O 1 2 3 4 Project X - $20,000 13,330 5,960 5,960 1,920 Project Y - $20,000 The PI for project X is 6,470 6,470 6,470 6,470 The cost of capital for both projects is 10 percent. Calculate the profitability index (PI) for each project. (Do not round discount factors. Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 4 decimal places, e.g. 1.2527.) Which project, or projects, should be accepted if you have unlimited funds to invest? If you have unlimited funds you should invest in and the PI for project Y is Which project should be accepted if they are mutually exclusive? If they are mutually exclusive you should invest in
QUESTION 8 The INTERNAL RATE OF RETURN for the project shown above is: O 3.92% O 13.25 O 15.17% 9 21.22% O No IRR QUESTION 9
Problem 8-25 Profitability Index versus NPV (L03) Consider projects A and B with the following cash flows: A B Co -$44 -69 C1 +$ 28 +38 C₂ +$ 28 +$ 28 +38 +38 B a-1. What is the NPV of each project if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? a-1. NPV of each project if the discount rate is 12% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? c. Which…
apters 7 through 10, & 12 1 Mc Graw HiM A project is expected to generate annual revenues of $116,900, with variable costs of $74,500, and fixed costs of $15,000. The annual depreciation is $3,800 and the tax rate is 21 percent. What is the annual operating cash flow? tly cloudy Multiple Choice O ο ο ο ο $58,692 $43,692 $31,200 $27400 $22,444 D Saved HH Q Search = Help O Save & Exit 1:41 PM 8/8/2023 Sub
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Vd Subject: acounting
Pls help stepwise sir
Time Remaining 1 hour 6 minutes 10 seconds 01:06:10 Item 8 Time Remaining 1 hour 6 minutes 10 seconds 01:06:10 Living Colour Company has a project available with the following cash flows: Year Cash Flow 0 −$ 32,190 1 8,510 2 10,290 3 14,820 4 16,330 5 11,420 If the required return for the project is 9.7 percent, what is the project's NPV? Multiple Choice $29,180.00 $13,808.85 $14,959.58 $15,781.54 $6,620.43
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A company has a project available with the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 35,990 12,570 14,740 19,660 11,000 If the required return for the project is 7.9 percent, what is the project's NPV? Multiple Choice $21,980.00 $11,078.65 $3,970.46 $12,085.80 $13,812.35

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