Author Question: Your company, Q4 Inc., is considering a new project whose data are shown below. The required ... (Read 91 times)

jacob816 · **on:** Aug 7, 2023

Question 1

Your company, Omega Corporation, is considering a new project that you must analyze. Based on the following data, what is the project’s Year 1 operating cash flow?

Sales revenues	$29,000
Capital cost allowance	$9,000
Cash operating costs	$14,000
Tax rate	38%

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$12,720

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$12,913

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$13,250

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$13,581

Question 2

Your company, Q4 Inc., is considering a new project whose data are shown below. The required equipment has an economic year of 5 years, and has a CCA rate of 30% in class 10. Revenues and cash operating costs are expected to be constant over the project’s 5-year operating life. What is the project’s net operating cash flow for Year 2?

Equipment cost	$80,000
Sales revenues (each year)	$70,000
Cash operating costs (each year)	$35,000
Tax rate	38%

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$28,213.00

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$28,667.50

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$29,097.50

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$29,452.00

knguyen · **Reply #1 on:** Aug 7, 2023

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