What is their operating cash flow

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Reference no: EM131937276

1. During 2016, Star Academy had revenue of $487. Cost of goods sold and depreciation were $262 and $103. In addition, the academy had an interest expense of $76 and an average tax rate of 23%. (All of the numbers are in thousands.) What is their operating cash flow?

$(9.06)

$93.94

$122.00

None of these

$196.94

2. Mountain Acupuncture is thinking of opening a new location. Initial supplies will require an upfront cost of $16,000. They estimate that they can earn $4,000 the first year in business, $5,000 in year 2, and $6,000 in years 3, 4 and 5. If their cost of capital is 15%, what is the NPV of this investment?

$1406.67

None of these

$1,100.00

$1617.66

$3,361.77

Reference no: EM131937276

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