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Which of the following is not one of the three, primary responsibilities of members of the Board of Directors for any company organized as a corporation?

Assume the following are the correct cash flows for the project, and your cost of capital is 8%, what is the NPV for the project?  These are not the actual values for this problem.  Do not use the ones you calculated in earlier problems.             ICF = -31             OCF[1] = 10             OCF[2] = 11             OCF[3] = 12             OCF[4] = 9             TCF = 6

You are considering the purchase of a new piece of equipment, “Model A”, that costs $600,000, and will be depreciated using four-year straight line depreciation over the course of the four year project.  The equipment requires 10,000 in annual maintenance, and will be sold for $80,000 at the end of four years.  If your effective tax rate is 20%, what will be the operating cash flow in year 2?  Your WACC is 10% on equipment purchases.  

Using an effective tax rate of 30%, what is NOPAT in 2014 for the firm?    

Which of the following is NOT true for firms seeking to obtain VC financing?

What is the weighted-average cost of capital for this company?

What is the free cash flow for the firm in 2014?

Which of the following is NOT an important characteristic of a potential portfolio firm when being evaluated by a VC to see whether the VC wants to invest in it?

Using the free cash flows given to you in the financials for 2015 onward, what is the overall market value for this firm?  In other words, what is the enterprise value?  The WACC is 12%

As an alternative, you could purchase “Model B” that costs $500,000, and will be depreciated using four-year, straight-line depreciation.  You will have no maintenance cost, and the equipment will be sold for $60,000 at the end of three years.  If your effective tax rate is 20%, what is the net salvage value of this equipment at the end of three years?  Your WACC is 10% on equipment purchases.