Shawn’s construction company has asked you to calculate oper…

Shawn’s construction company has asked you to calculate operating cash flow for 2019.  The company had total revenue of $4,116 with selling and administrative expenses of $554.  The cost of goods sold for 2019 was $2,354.  Shawn’s used depreciation expense of $319 and interest expense of $162.  The company paid out $75 in dividends after paying taxes of $186. 

Under many circumstances, conglomerates display negative add…

Under many circumstances, conglomerates display negative added value which implies that the conglomerate is pursuing a corporate strategy that destroys value.  When considering why this negative added value exists, the most prominent and likely rationale includes:

You have been asked to analyze a project by calculating the…

You have been asked to analyze a project by calculating the NPV of the project.  This project is expected to produce cash flows of $41,000, $39,000, and $17,000 over the next three years, respectively. After three years, the project will be worthless. What is the net present value of this project if the applicable discount rate is 12.25 percent and the initial cost is $78,500?  (pick the closest answer)

Sandy’s Sunshine, Inc. is considering a new project.  The pr…

Sandy’s Sunshine, Inc. is considering a new project.  The project has an initial cash outflow of $13,000 and cash inflows of $2,000 in Year 1, $6,900 in Year 2, and $2,400 in Year 3? The discount rate is 9.5 percent.  What is the NPV of this proposed project?  (select the closest answer)