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1)A proposed project would require the purchase of a new press. The estimated purchase price...

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Accounting

1)A proposed project would require the purchase of a new press. The estimated purchase price is is $34,795; estimated other costs are: shipping @ $1,960; installation @ $2,785. Additional inventory of $5,550 is expected to be needed of which 40% will be on credit. The press will be depreciated straight line to $3,874 salvage over 6 years. What is the estimated depreciation rate on the press?

$5,944.33

$6,314.33

$6,499.33

$7,010.22

2)

A proposed project is expected to generate annual revenues of $30,000 a year; the first year's revenue is expected to have 40% Accounts Receivable which will be collected in year 2.. Annual operating expenses are expected to be: labor @ $12,515; interest @ $3,000; depreciation @ $ 13,965. The tax rate is 30%. What is the expected OCF for the proposed project for the first year?

$5,929.00

$8,029.00

$14,329

$16,429

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