XYZ is now evaluating the purchase of a new machine for $210,000 installed with no NWC change. They plan to sell the machine at the end of 3 years for $30,000. MACRS 3 year depreciation. With the more efficient machine, labor savings per year are expected to be $70,000, $94,000 and $76,000 respectively. 40% tax. The cost of capital for this project is 8.%

The option of working cooperatively with another company has just been presented instead of purchasing the new machine. The details of this option are: initial investment of $120,000, net operating cash flows (years 1-3) of 47,000, 49,000 and 52,000 respectively (already takes into account depreciation effect and terminal cash flow so there is no need to calculate depreciation effect or terminal value just use these as-is for your analysis), cost of capital for this project is 8.2%.

1. Besides analyzing the numbers, list two areas of concern XYZ might look at when deciding whether to choose working cooperatively with another company. State in 25 words or less.

Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to $9.12 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Round your answer to the nearest dollar. Do not round intermediate calculations.

Prepare a budget (one month) for An Internet Startup Advertising company. This Internet company has 3 people: Software developer, sales, website maintenance/accounting. These 3 people founded this company by themselves, they are in different locations and work from their homes. All figures should be reasonable.

write more detailed information about Apple for example: their line of business, products, customer base, geography, future investments and plans, etc.(you can find more information in their annual report)

New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $850,000, and it would cost another $23,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $557,000. The machine would require an increase in net working capital (inventory) of $13,500. The sprayer would not change revenues, but it is expected to save the firm $414,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. What is the Year 0 net cash flow? $ What are the net operating cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1 $

Year 2 $

Year 3 $

What is the additional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)? Do not round intermediate calculations. Round your answer to the nearest dollar. $

If the project's cost of capital is 15 %, what is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar. $ Should the machine be purchased?

3.

A project has an initial cost of $37,875, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

Louie’s Leisure Products is considering a project which will require the purchase of $1.5 million of new equipment. Shipping and installation will be an additional $300,000. For tax purposes, the equipment will be depreciated straight-line to a salvage value of $200,000 over the five-year life of the project. Louie’s expects to sell the equipment at the end of five years for $100,000. Annual sales from this project are estimated at $1.2 million with annual operating costs estimated at $500,000. Net working capital is equal to $100,000, and all of the net working capital will be recouped at the end of the project. The firm desires a minimal 14% rate of return on this project. The tax rate is 34%. What is the NPV of the project?

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $16 million, and production and sales will require an initial $1 million investment in net operating working capital. The company's tax rate is 35%.

1. What is the initial investment outlay? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
   $
   
2. The company spent and expensed $150,000 on research related to the new project last year. Would this change your answer?
   -Select-YesNoItem 2
   
3. Rather than build a new manufacturing facility, the company plans to install the equipment in a building it owns but is not now using. The building could be sold for $1.5 million after taxes and real estate commissions. How would this affect your answer?
   The project's cost will -Select-increasedecreasenot changeItem 3 .

You are financing a new car with a three-year loan at 10.5% annual nominal interest, compounded monthly. The price of the car is $14,500. Your down payment is $1,500. What are your monthly payments at 10.5%? (Assume your payments start one month after the purchase, or at the end of the first period.)

the difference between the internal rate of return method and the modified internal

After the acquisition, the good doctor was presented by his Finance Manager the following costs in performing a particular procedure using the equipment:

4.1.      Share in the monthly salaries of the Admin staff                   $20,000

4.2.      Share in maintenance Costs                                                   $10,000

4.3.      Share in other monthly overhead costs                                 $130,000

4.4.      Supplies, medication needed in the procedure                     $15,000

Assuming the procedure’s price is pegged at $20,000, determine the needed total number of patients per month to break even. Assume a net income of $150,000 per month is desired, how many procedures must be done to accomplish this? How would the picture look assuming the cost of supplies and medication from the procedure increases to $22,000.

The company  is deciding on which equipment to acquire. Each is worth 20Million. The company thinking if financing the 50% equity, 25 % via 5 year term loan at 7.5 % annual effective interest and the balance via $100/ share callable preferred shares of stock that promises to pay 4% quarterly dividends. The company consistently paid the 5% semi annual dividends on its common shares. Calculate the weighted average cost of capital of the project. Disregard taxes in your computations. Assume full principal payment on year 5.

After receiving proposals from suppliers, the finance manager came up with the following comparative cash flow projection:

                        Equipment A                           Equipment B

Year 1              $2,000,000                              $4,000,000

Year 2              $2,000,000                              $4,000,000

Year 3              $5,000,000                              $4,000,000

Year 4              $5,000,000                              $4,000,000

Year 5              $6,000,000                              $4,000,000

Using the information derived above, and using the Net Present Value (NPV), Discounted Payback Period and Profitability Index, which will you recommend of the two equipment to acquire?

A firm is considering a project that requires an initial investment of $250,000. The life of this project is five years. Cash flows for each year are estimated as follows:

The cost of capital of this project is 8%. Calculate the profitability index and make a decision.

1.) badBanana co. has an average age of inventory equal to 25 days. if its end of year inventory level is $8,500, then what does that imply for the cost of goods sold during the year? (round to the nearest dollar)

a.) $582

b.) $4964

c.) $21,250

d.) $124,100

2.) What Ratio measures the ability of the firm to satisfy its short term obligations as they come due?

a.) TImes Interest and earned ratio

b.) current ratio

c.) Inventory turnover ratio

3.) Which of the following represents an inflow of cash?

a.) A decrease in any liability

b.) repurchase or retirement of stock

c.) A decrease in any asset