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University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 439 Weeks Ago |
| Questions Answered: | 9562 |
| Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Keira Knightley Company buys a piece of equipment for $36,442 that will last for 7 years. The equipment will generate cash flows of $7,000 per year and will have no salvage value at the end of its life. Ignore taxes unless told to include them. What is the net present value using a 12% cost of capital? A $2,681 B. $4,495 C. ($2,681) D. ($4,495) 13. What is the internal rate of return? A. 14% B. 12% C. 10% D. 8% 14. Using straight-line depreciation over the life of the asset, what is the after tax cash flow in year 3? Assume a 30% tax rate and that the original cash flow was before tax. A. $4,900 B. $1,794 C. $1,256 D. $6,462 15. What is the payback period? A. 5.2 years B. 5.2% C. 520% D. 5.2 times
The----------- NP-----------V i-----------s $-----------449-----------5. -----------sl -----------no -----------yea-----------r C-----------ash----------- fl-----------ow -----------Pre-----------sen-----------t v-----------alu-----------e f-----------act-----------or -----------at -----------cos-----------t o-----------f c-----------api-----------tal----------- =1-----------2% -----------Dis-----------cou-----------nte-----------d c-----------ash----------- fl-----------ow -----------1 0----------- C0----------- (3-----------6,4-----------42.-----------00)----------- 1 -----------(36-----------,44-----------2.0-----------0) -----------2 1----------- C1----------- 7,-----------000-----------.00-----------