Fine-Carpets Ltd. reports the following free cash flows from its recent project: -3,000,000+ 1,160,000+ 1,273,500+ 1,492,650 What is the project's NPV if the cost of its capital is 12%? O a. $131,379.48 O b. $113,379.48 ○ c. $113,973.48 O d. $311,937.48 O e. $113,397.48 Wise-Products Ltd. has an operating profit margin of 8% and a sales-to-assets ratio of 3. Its assets are worth $500,000 and the equity is $300,000. Wise-Products makes interest payments of $30,000 and the tax rate is 35%. What is Wise-Product's ROA and ROE respectively? a. 117% and 195% O b. 7.11% and 5.19% ○ c. 1.17% and 1.95% O d. 19.5% and 11.7% ○ e. 11.7% and 19.5%

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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Fine-Carpets Ltd. reports the following free cash flows from its recent project:
-3,000,000+ 1,160,000+ 1,273,500+ 1,492,650
What is the project's NPV if the cost of its capital is 12%?
O a. $131,379.48
O b. $113,379.48
○ c. $113,973.48
O d. $311,937.48
O e. $113,397.48
Transcribed Image Text:Fine-Carpets Ltd. reports the following free cash flows from its recent project: -3,000,000+ 1,160,000+ 1,273,500+ 1,492,650 What is the project's NPV if the cost of its capital is 12%? O a. $131,379.48 O b. $113,379.48 ○ c. $113,973.48 O d. $311,937.48 O e. $113,397.48
Wise-Products Ltd. has an operating profit margin of 8% and a sales-to-assets ratio of 3. Its
assets are worth $500,000 and the equity is $300,000. Wise-Products makes interest
payments of $30,000 and the tax rate is 35%. What is Wise-Product's ROA and ROE
respectively?
a.
117% and 195%
O b. 7.11% and 5.19%
○ c.
1.17% and 1.95%
O d. 19.5% and 11.7%
○ e.
11.7% and 19.5%
Transcribed Image Text:Wise-Products Ltd. has an operating profit margin of 8% and a sales-to-assets ratio of 3. Its assets are worth $500,000 and the equity is $300,000. Wise-Products makes interest payments of $30,000 and the tax rate is 35%. What is Wise-Product's ROA and ROE respectively? a. 117% and 195% O b. 7.11% and 5.19% ○ c. 1.17% and 1.95% O d. 19.5% and 11.7% ○ e. 11.7% and 19.5%
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