1. What is Operating Cash Flow
Income found after subtracting all costs and expenses from revenue.
The amount of cash that can be withdrawn from a firm without harming its ability to operate and to produce future cash flows.
The cash generated from a firm's normal business activities.
Earnings from operations before interest and taxes.
None of these
2. What is Capital Structure
None of these
The minimum rate of return on a common stock that a stockholder considers acceptable.
A weighted average of the costs of a firm's capital including debt, preferred stock, and common equity.
The mix of debt and equity that a firm uses to finance its assets.
The current price that a firm's stock (equity capital) trades for.
3. Windflower Farm is considering an investment in a new project, which would require $5500 worth of capital expenditures and an increase of $4500 in net working capital that will be recovered at the end of the project. Each year, starting at the end of the first year, the operating cash flows of the project will be $1700 for 5 years. The project is risky, so its WACC is 13%. What is the net present value of the project?
$1,667.24
$-1,578.29
None of these
$-4,020.71
$-1,396.71