1. During 2016, Star Academy had revenue of $487. Cost of goods sold and depreciation were $262 and $103. In addition, the academy had an interest expense of $76 and an average tax rate of 23%. (All of the numbers are in thousands.) What is their operating cash flow?
$(9.06)
$93.94
$122.00
None of these
$196.94
2. Mountain Acupuncture is thinking of opening a new location. Initial supplies will require an upfront cost of $16,000. They estimate that they can earn $4,000 the first year in business, $5,000 in year 2, and $6,000 in years 3, 4 and 5. If their cost of capital is 15%, what is the NPV of this investment?
$1406.67
None of these
$1,100.00
$1617.66
$3,361.77