What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2020?

Selling, General, and Administrative expenses are $1,000 per year and are paid cash during the same year.

Taxes are 34% and are paid during the following fiscal year. At the end of each year, investors decided to reinvest 25% of earnings and use the rest to pay a cash dividend.

The following information is true for fiscal year 2021:

· There is no production of screws during 2021

· ABC, Inc., buys no metal in 2021

· ABC, Inc., sells all its leftover screws for $4.50 per pack

· ABC, Inc., sell its metalworking machinery for $300.

· All sales during 2021 are done cash only.

· There are no marketing costs in 2021.

· Any taxes for fiscal year 2021 are paid right away in 2021.

· Any remaining cash is distributed as a cash dividend to shareholders.

The discount rate is 10%.

1. What was the total cash flow for capital budgeting purposes for ABC, Inc., in 2015? These are the investment costs of the project at time zero.

2.What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2016?

3. What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2017?

4. What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2018?

5. What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2019?

6. What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2020?

7. What was the total cash flow for capital budgeting purposes (assume an all-equity firm) for ABC, Inc., in 2021?

8. What was the NPV of the project given the 10% discount rate

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