Williams & Sons last year reported sales of $37 million, cost of goods sold (COGS) of $30 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the nearest dollar.

You are a consultant to a large manufacturing corporation that is considering a project with the following net after-tax cash flows (in millions of dollars):

The project's beta is 1.9.

a. Assuming that r_f = 6% and E(r_M) = 12%, what is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Round your answer to 2 decimal places.)

Troll Inc is considering replacing an old, relatively inefficient Troll onjection-mold machine that was purchased three years ago with a new, more effiecent model. The cost of the old machine has $7500 and had an expected MACRS life of three years. If they sell the old machine now they would receive $1000. However, at the end of five years the old machine is worthless. The cost of the new machine is $12000 and would require an increase in inventory of 1,500. Suppliers would grant the firm an additional 500 in trade credit for the new level of inventory. The expected lfe of the new machine is three years and will reduce annual lablor expenses from 10,000 to 4,000. At the end of the project the firm will be able to sell the new machine for 3,000 an recoup their investment in working capital. The firm has a marginal tax rate of 40 percent. Troll's marginal cost of capital is calculation and readability, round your cash dlows to the nearest whole dollar. Using net present value, and internal rate of return, decide whether they should accept or reject this project.

Snider Industries sells on terms of 3/10, net 45. Total sales for the year are $520,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 50 days after their purchases. Assume 365 days in year for your calculations.

1. What is the days sales outstanding? Round your answer to one decimal place.
   
2. What is the average amount of receivables? Round your answer to the nearest dollar. Do not round intermediate calculations.
   
3. What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 45th day? Round your answer to the nearest dollar. Do not round intermediate calculations.
   

Finance:

The Bruin's Den Outdoor Gear is considering a new 6-year project to produce a new tent line. The equipment necessary would cost $1.35 million and be depreciated using straight-line depreciation to a book value of zero. At the end of the project, the equipment can be sold for 10 percent of its initial cost. The company believes that it can sell 25,000 tents per year at a price of $67 and variable costs of $27 per tent. The fixed costs will be $425,000 per year. The project will require an initial investment in net working capital of $205,000 that will be recovered at the end of the project. The required rate of return is 12.6 percent and the tax rate is 35 percent. What is the NPV? $639,997 $362,602 $417,859 $522,276 $962,718

Finding operating and free cash flows   Consider the balance sheets and selected data from the income statement of Keith Corporation that follow

Keith Corporation Balance Sheets

Income Statement Data

​(20192019​)

. a. Calculate the​ firm's net operating profit after taxes​ (NOPAT) for the year ended December​ 31, 20192019.

b. Calculate the​ firm's operating cash flow​ (OCF) for the year ended December​ 31, 20192019.

c. Calculate the​ firm's free cash flow​ (FCF) for the year ended December​ 31, 20192019.

d.​ Interpret, compare and contrast your cash flow estimate in parts​ (b) and​ (c). a. The net operating profit after taxes is ​$nothing. ​(Round to the nearest​ dollar.)

Depreciation and accounting cash flow   A firm in the third year of depreciating its only​ asset,which originally cost $175,000and has a​ 5-yearMACRS recovery period

has gathered the following data relative to the current​ year'soperations:

1. Use the relevant data to determine the operating cash flow for the current year.

Complete the following table to determine the operating cash flow​ (OCF):  ​(Round to the nearest​ dollar.)

Enter any number in the edit fields and then click Check Answer.

b. Explain the impact that​ depreciation, as well as any other noncash​ charges, has on a​ firm's cash flows.

   How does behavioral finance explain the real world inconsistencies of the efficient markets hypothesis (EMH)?

Choose one derivative product: credit default swap, interest rate swap, currency swap, forwards, futures or any other derivative security you found interesting.

definition of the instrument, simple explanation how the instrument works, as well as description of potential investor`s profiles (i.e who and why usually buy the instrument)

Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2016, is shown here (millions of dollars):

Sales for 2016 were $200 million and net income for the year was $6 million, so the firm's profit margin was 3.0%. Upton paid dividends of $2.4 million to common stockholders, so its payout ratio was 40%. Its tax rate was 40%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2017. Do not round intermediate calculations.

1. If sales are projected to increase by $80 million, or 40%, during 2017, use the AFN equation to determine Upton's projected external capital requirements. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
   $ million
   
2. Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places.
   %
   
3. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2017. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt).
   Assume Upton's profit margin and dividend payout ratio will be the same in 2017 as they were in 2016. What is the amount of the line of credit reported on the 2017 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2017 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Round your answers to the nearest cent.

   Upton Computers Pro Forma Balance Sheet December 31, 2017 (Millions of Dollars)
   Cash	$
   Receivables	$
   Inventories	$
   Total current assets	$
   Net fixed assets	$
   Total assets	$
   Accounts payable	$
   Notes payable	$
   Line of credit	$
   Accruals	$
   Total current liabilities	$
   Mortgage loan	$
   Common stock	$
   Retained earnings	$
   Total liabilities and equity	$

Pro forma income statement   The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.53 million. Interest expense is expected to remain unchanged at $34,000, and the firm plans to pay $74,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December31, 2019i is given (See belong Graph) ,along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020 b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why.

Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019

Cost of goods sold:

Fixed cost $202,000

Variable cost 700000

Total cost $902,000

Operating expenses Fixed expenses $39,000

Variable expenses 80000

Total expenses $119,000

Metroline Manufacturing Income Statement for the Year Ended December 31, 2019

Sales revenue $1,396,000

Less: Cost of goods sold 902000

Gross profits $494,000

Less: Operating expenses 119000

Operating profits $375,000

Less: Interest expense 34000

Net profits before taxes $341,000

Less: Taxes (rate = 40%) 136400

Net profits after taxes $204,600

Less: Cash dividends 63000

To retained earnings $141,600

Looking for a response to the following statement:

There are four forms of business organizations: sole proprietorships, partnerships, limited liability companies, and corporations. Proprietorships are easy to form, subject to very few regulations and do not have as high of income taxes. With that said, they are subject to more liability, are only allowed to stay in business for as long as the owner is alive and do not have large capital. Partnerships, like proprietorships, are subject to less taxes and are very easy and inexpensive to form, but they are subject to unlimited amount of liability and tend to not real large amounts of capital. Limited liability companies, or limited liability partnerships are limited in the amount of liability held on the company, is owned by investors who have control over the business and rising capital increases growth. Limited liabilities are more complex than proprietorships and require legal assistance in coming up with an operating agreement. The business also is effect more by the stock market than other types of businesses. As for corporations, it is easy to transfer stock and liability falls very little on the owners as they are only subject to losses from the money actually invested in the company. The main disadvantage would be that corporations are subject to larger taxes.

I am having some difficulties finding the IRR and NPV, and the discounted payback period of a Capital project for Intel that will last 12 yrs:

Project Cost; 10% of PPE : 4,897,600

Annual Depreciation: 387,726.67 /yr over 12 yrs

Annual EBIT: 881,568

WACC: 6.55%

Free Cash Flows (Year 1-12): 825,038.54