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than depreciation, and 51.750 of deprec 7.096 interest rate, and its federal firm's earnings before taxes (ERTY A) 53,799 B) 55.211 C) 54,870 D) 55,649 E) 55,065 a ion. The company had 3.500 of hond operations and generate future sales and Shrives Publishing recently reported S.500 of 5.500 of operating hun depreciation, and $250 afde l h 3 .500 obe 6.2596 interest rate and o interest rate, and its federal-plus-state income tax rate was 25%. During the turm had expenditures on fixed assets and net t ing working capital that These expenditures were necessary for it to sustain operation and genera asanswers to astows. What was its free cash flow (Round your intermediate and in whole dollar amount.) A) $3,457 B) $2,593 C) $2,955 D) $3,263 E) $3,039 38) The Nantell Corporation just purchased an exnensive piece of equipment. Assume that the firm planned to depreciate the equipment over 5 years on a straight-line basis, but Congress then passed a provision that requires the company to depreciate the equipment on a straight-line basis over 7 years. Other things held constant, which of the following will occur as a result of this Congressional action? Assume that the company uses the same depreciation method for tax and stockholder reporting purposes. A) Nantell's taxable income will be lower B) Nantell's operating income (EBIT) will increase. C) Nantell's cash position will improve (increase). D) Nantell's reported net income for the year will be lower. E) Nantell's tax liability for the year will be lower. 39) This morning. DJ's invested $225,000 to help fund future projects. How much additional money will the firm have three years from now if it can earn an annual interest rate of 4 percent rather than 3.5 percent? A) $3,391.90 B) $3,632.88 C) $3,008.17 D) $4,219.68 E) $3,711.08

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