What is annual operating cash flow

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1. A 10-year project is expected to generate annual sales of $156,175, variable costs of $32,481, and fixed costs of $45,642. The annual depreciation is $11,261 and the tax rate is 24 percent. What is the annual operating cash flow?

2. What is the NPV of this project if the required rate is 19%? Year CF 0 -$1,647 1 $1,011 2 $1,609 3 $2,310

3. The risk-free rate is 6.9%, the market risk premium is 9.6%, and the stock’s beta is 1.72. What is the required rate of return on the stock, E(Ri)?

Use the CAPM equation.

Reference no: EM132020479

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