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A firm with a 12.5 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$6,000 $2,900 $2,900 $2,000 $2,500 Calculate the project’s payback period.

A firm with a 12 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$5,000 $2,200 $2,300 $2,300 $1,700 Calculate the project’s discounted payback period.

A firm with a 9.5 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$11,000 $3,500 $4,800 $4,200 $5,000 Calculate the project’s payback period.

A firm with a 9.5 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$6,000 $2,900 $2,200 $2,900 $2,900 Calculate the project’s discounted payback period.

As a member of UA Corporation’s financial staff, you must estimate the Year 1 operating cash flow for a proposed project with the following data. What is the Year 1 operating cash flow?   Sales revenues, each year $42,500 Depreciation $10,000 Other operating costs $17,000 Interest expense $  4,000 Tax rate 35.0%    

Given the following information on the project’s net operating working capital, the cash flow of year 3 due to investments in net operating working capital is________? Time    NOWC 0         21.37 1         30.05 2         31.61 3         20.00

A firm with a 12.5 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$6,000 $2,300 $2,800 $2,900 $2,500 Calculate the project’s discounted payback period.

A firm with a 12 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$14,000 $5,300 $5,000 $5,200 $6,400 Calculate the project’s payback period.

The Crabtree Company’s cost of common equity is 13 percent, its before-tax cost of debt is 8 percent, and its marginal tax rate is 40 percent.  Given Crabtree’s market value capital structure below, calculate its WACC. Long-term debt $20,000,000 Common equity   40,000,000 Total capital $60,000,000

A firm with a 10 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$8,000 $3,600 $3,900 $2,800 $3,400 Calculate the project’s payback period.