Author Question: Smith Manufacturing Inc expects the following results in year one of a new project: Revenue 400,000 ... (Read 63 times)

tingc95

  • Hero Member
  • *****
  • Posts: 556
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.


ndhahbi

  • Sr. Member
  • ****
  • Posts: 390
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

For a complete list of videos, visit our video library