1. Determine the operating cash flow (OCF) for Kleczka, Inc., base All values are in thousands of dollars.) During the year the firmbd 1,800, operating expenses totaled $300 $2,500, cost of goods sold totaled reciation expenses were $200. The firm is in the 35% tax bracket.
2. A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 154,000 1 62,000 2 77,000 3 61,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 13 percent, should the firm accept the project?