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University
| Teaching Since: | Apr 2017 |
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| Questions Answered: | 9562 |
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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
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1. What is the IRR of the following set of cash flows? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Year | Cash Flow | ||
| 0 | Ac€?o$ | 16,600 |  |
| 1 | Â | 7,300 | Â |
| 2 | Â | 8,600 | Â |
| 3 | Â | 7,100 | Â |
| Â | |||
| IRR | % |
|
2. Fill in the missing numbers for the following income statement. (Input all amounts as positive values.) |
| Â | |||
| Â Â Sales | $ | 680,900 | Â |
| Â Â Costs | Â | 435,800 | Â |
| Â Â Depreciation | Â | 108,400 | Â |
| Â | Â | Â | Â |
| Â Â EBIT | $ | Â | Â |
| Â Â Taxes (34%) | Â | Â | Â |
| Â | Â | Â | Â |
| Â Â Net income | $ | Â | Â |
| Â | Â | Â | Â |
| Â | |||
| Calculate the OCF. |
| Â Â OCF | $ |
| What is the depreciation tax shield? |
| Â Â Depreciation tax shield | $ Â Â |
|
3. A proposed new project has projected sales of $134,000, costs of $68,000, and depreciation of $13,700. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches. |
| Â Â Approaches | Operating cash flow |
| Â Â EBIT + Depreciation - Taxes | $ Â Â Â |
| Â Â Top-down | $ Â Â Â |
| Â Â Tax-shield | $ Â Â Â |
| Â Â Bottom-up | $ Â Â |
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