Question 1) Michelle electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost $150,000 and be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project?
Question 2) Ralph and Emma's is considering a project with total sales of $17,500 total vairable costs of $9,800 total fixed costs of $3,500, and estimated production of 400 units. The depreciation expense is $2,400 a year. What is the contribution margin per unit?
Question 3) You borrow $5,600 to buy a car. The ters of the loan call for monthly payments for four years at a 5.9% rate of interest. What is the amount of each payment?
Question 4) You need to borrow some money from a friend. The terms are I make $20 a month for next six months. But I am required to make my first payment today. My friend is charging me 1.5% interest per month. How much money am I borrowing?