Question

Problems. Select the b a nd answer an and the ke Healthy dividend rate of A $11.5 B $12 $12 $10 $13 A51.505.52 B. $1,067.24 $1,758.71 D $1.519 SR ES002.71 5. T qu 14. The Steel Factory is considering a project that will produce annual cash flows of SA ROO, SA0,200, 546,200, and $41,800 over the next four years, respectively. What is the internal rate of return the vital cost of the projet $127.9007-nilalament X 13.00 percent a 2 years Payback 45,00 127,900 84.000 period HI B. 10.19 percent 7 40,200 C. 11.28 percent 2 : 2 years &.95 461. D. 12.24 percent E. 12.83 percent 4 41, 980 μοίοι 72 pool Payback 2.95 years 15. Athletic Corporation is planning a $1.08 million new production facility. This cost will be depreciated on a straight-line basis over a 20-year period. The facility is expected to generate $489,000 in annual sales. Variable costs are 46 percent of sales, the annual fixed costs are $129,400, and the tax rate is 34 percent. What is the operating cash flow for the first year of this project? A. $118,336.82 B. $92,509.15 C. $107,235.60 D. $106,666.67 E. $119,323.33 16. A firm is reviewing a project that has an initial cost of $67,000. The project will produce annual cash inflow starting with Year 1, of $8,000, $13,400, $18,600, $24,100, and finally in Year 5, $37,900. What is the profitat index if the discount rate is 11 percent? A. 0.92 B. 0.98 C. 1.02 11.05

14,15 and 16 please

Answer 1

Ans 16) D 1.05

Year	Project Cash Flows (i)	DF@ 11%	DF@ 11% (ii)	PV of Project ( (i) * (ii) )
1	8000	1/((1+11%)^1)	0.901	7,207.21
2	13400	1/((1+11%)^2)	0.812	10,875.74
3	18600	1/((1+11%)^3)	0.731	13,600.16
4	24100	1/((1+11%)^4)	0.659	15,875.42
5	37900	1/((1+11%)^5)	0.593	22,491.81
		PV		70,050.33
	Total of PV of Cash Inflows			70050.33
	Cash Outflows			67000
	Profitability Index =			1.05
Present value of cash Inflow / Initial Investment (Cash Outflows)				(70050.33 / 67000)