1. A company is considering a new four-year project with an initial investment requirement of $75,000. The equipment will be depreciated straight-line to zero over the life of the project and will be worthless at the end of the project. Sales are estimated at $142,000 with costs of $88,200. The tax rate is 34%. What is the project OCF?
a) $28,394
b) $30,506
c) $37,900
d) $39,394
e) $41,883
2. What will $150,000 grow to be in 4 years if it is invested today in an account with a quoted annual interest rate of 6.5% with weekly compounding of interest? (Assume 52 weeks per year.)
a) $190,904
b) $191,018
c) $192,520
d) $193,231
e) $194,508