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What is the project annual incremental ebit

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Reference no: EM132726382

Problem 1: What is the future value of $3000 invested for 5 years, if the interest rate is 7% p.a., compounding quarterly?

Select one:

a. $4192
b. $4254
c. $4205
d. $4244

Problem 2: Project Beta is a 3-year project which requires an initial outlay of $3,000. This outlay will be depreciated using straight-line depreciation over the life of the project. It will generate incremental revenue of $6000 per year and incremental costs (excluding depreciation) of $1200. The tax rate is 20%. What is the project's annual incremental EBIT?

Select one:

a. $2800
b. $3800
c. $5800
d. $3800

Reference no: EM132726382

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