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Author Question: Smith Manufacturing Inc expects the following results in year one of a new project: Revenue 400,000 ... (Read 62 times)

tingc95

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on: Jul 10, 2018
Smith Manufacturing Inc expects the following results in year one of a new project:
  Revenue 400,000
  Cash Expenses 150,000
  Depreciation 90,000
  EBIT 160,000
  Taxes 48,000
  Net Income 112,000
  The annual change in operating cash flow is equal to
 
  A) 160,000. B) 250,000. C) 298,000. D) 202,000.

Question 2

Cost of capital is commonly used interchangeably with all of the following terms EXCEPT
 
  A) the internal rate of return for new investments.
  B) the hurdle rate for new investments.
  C) the firm's opportunity cost of funds.
  D) the firm's required rate of return.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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ndhahbi

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

A


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