1. The current price of scrap steel is $6/pound, but it was 4.87/pound just 4 years ago. What is the average inflation rate for scrap steel?
a) 5.64%
b) 5.36%
c) 5.46%
d) 5.52%
2. Assuming in the last year of a project that Revenue was $100,000, Expenses were $50,000, Working Capital Release was $15,000, and a machine was sold for $30,000, which cost $80,000 new and had a book value of $10,000, what is the expected end of year after tax cash flow? (Corporate taxes are 40%)
a) $53,800
b) $67,000
c) $81,300
d) $75,000