Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

ofe olloig be inchued ln most cash flow analyses of investment decisiono agerati

ID: 2785759 • Letter: O

Question

ofe olloig be inchued ln most cash flow analyses of investment decisiono agerating cash flows 4all of the above End BV 12,000.00 20.00% $ 2,400.00 $ 9,600.00 15,760.00 19.20% S 2,304.00 $ 3,456.00 $ 3,45600 11.52% $ 1,382.40 $ 2,073.60 $ 2,073.60 11.52% $ 1,382.40 $ 691.20 9,600.00 32.00% $ 3,840.00 $ 5,760.00 691.20 5.76% $ 691.20 $ 100.00% $ 12,000.00 a tax rate of 39% You·ellingthemehine at the end ofyear 3 for S4,000. What is the net salvage cathflow a The NSCF is $2,840.40 The NSCF is $3,159.60 The NSCF is $4,000.00 The NSCF is $3,809 60 3What is the sample standand deviation for the following 3 years of data? Some of the work is done to make the solution faster Deviatiorn 2015 2016 2017 9% SUM The Stabdant Deviating ii 1.73% The Standard Deviaton isI The Standard whih one ofthe following is a correct ranking of securities based on their yolatility over the period of 1926-20127 Rank from highest to lowest small company stocks corporate bonds, intermediate-term government bonds c large company stocks, U.S. Treasury bills, dsmall company stocks corporate bonds, U.S. Treasury bills government bonds stoc

Explanation / Answer

1. in capital budgeting analysis, the analyst has to consider first initial investment which includes investment in fixed assets and chnage in working capital in second step, the analyst has to determine future cash flows from investment. in third step they should analyse the effect on other project because of this project.

SO all of the option are correct.

Option (D) is correct answer.

2.

Sale price = $4,000

Salvage at end of year 3 = $3,456.

After tax salvage value at end of year 3 = $3,456 + ($4,000 - $3,456) × (1 - 35%)

= $3,456 + ($544 × 65%)

= $3,456 + $353.60

= $3,809,60

After tax salvage value at end of year 3 is $3,809.60.

Option (D) is correct answer.