Ventana Windows is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working cap

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answerhappygod
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Ventana Windows is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working cap

Post by answerhappygod »

Ventana Windows is looking at a project that will require
$80,000 in fixed assets and another $20,000 in net working capital.
The project is expected to produce annual sales of $110,000 with
associated costs of $70,000. The project has a life of 4 years. The
company ignores bonus depreciation and instead uses straight-line
depreciation to a zero book value over the life of the project. The
tax rate is 21 percent. What is the annual operating cash flow for
this project?
$35,8000
$40,000
$27,000
$43,200
$31,600
2.Teahna’s announced that its next annual dividend will be $1.80
per share and all future dividends will increase by 4 percent
annually. What is the maximum amount you should pay to purchase a
share of this stock if you require a rate of return of 11
percent?
$16.36
$26.74
$25.71
$28.54
$17.02
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