CMA（P2）——Investment Decision
信息来源：金融范 2014-10-15 10:13 knroman
D.1.1. In discounted cash flow techniques, which one of the following alternatives best reflects the items to be incorporated in the initial net cash investment?
| |
Capitalized expenditures (e.g., shipping costs) |
Changes in net working capital |
Net proceeds from sale of old asset in a replacement decision |
Impact of spontaneous changes in current liabilities |
| A. |
No |
Yes |
Yes |
Yes |
| B. |
Yes |
No |
No |
No |
| C. |
No |
Yes |
No |
No |
| D. |
Yes |
Yes |
Yes |
Yes |
D.1.2. Regis Company, which is subject to an effective income tax rate of 30%, is evaluating a proposed capital project. Relevant information for the proposed project is summarized below.
| Initial investment |
$500,000 |
| Annual operating cash inflows for the first three years. |
|
| Year 1 |
$185,000 |
| Year 2 |
$175,000 |
| Year 3 |
$152,000 |
Depreciation will be calculated under the straight-line method using an 8-year estimated service life and a terminal value of $50,000. In determining the estimated total after-tax cash flow in Year 2 of the project, Regis should consider the after-tax operating cash
A. inflow only.
B. inflow plus annual depreciation expense.
C. inflow plus annual depreciation tax shield.
D. inflow plus the net impact of the annual depreciation expense and depreciation tax shield.
D.1.3. Garfield, Inc. is considering a 10-year capital investment project with forecasted revenues of $40,000 per year and forecasted cash operating expenses of $29,000 per year. The initial cost of the equipment for the project is $23,000, and Garfield expects to sell the equipment for $9,000 at the end of the 10th year. The equipment depreciates over 7 years. The project requires a working capital investment of $7,000 at its inception and another $5,000 at the end of year 5. assuming a 40% marginal tax rate, the expected net cash flow from the project in the 10th year is:
A. $32,000
B. $24,000
C. $20,000
D. $11,000
D.1.4. Calvin Inc. is considering the purchase of a new state-of-art machine to replace its hand-operated machine. Calvin's effective tax rate is 40%, and its cost of capital is 12%. Data regarding the existing and new machines are presented below.
关键词:
Investment Decision