Determine the project annual net cash flows

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Reference no: EM132058770

1. An investment project is expected to generate earnings before taxes (EBT) of $30,000 per year. Annual depreciation from the project is $30,000 and the firm's tax rate is 40 percent. Determine the project's annual net cash flows.

$48,000

$66,000

$36,000

$52,000

2. A firm's price to earnings ratio is 8 and its market to book ratio is 2. If its earnings per share are $4.00, what is the book value per share?

a. $64.00

b. $32.00

c. $16.00

d. $ 8.00

3. Historically, the yield curve has generally been ____, which indicates that long-term interest rates usually have been ____ short-term interest rates. upward sloping, lower than

downward sloping, higher than

upward sloping, higher than

level, about equal to

Reference no: EM132058770

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