Year 1 Year 2 Year 3 Year 4 Year 5 Units Sales 75,000 95,000...

	Year 1	Year 2	Year 3	Year 4	Year 5
Units Sales	75,000	95,000	125,000	130,000	140,000

Equipment Cost	61,000,000
Salvage value

Units Price	650
Variable cost (per unit)	300
Fixed costs (per year)	4,300,000

Tax rate	35%
NWC (% of sales)	15%
Required return	12%
Required Payback Period (years)	3

MACRS Schedule	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8
3-year	33.33%	44.45%	14.81%	7.41%
5- year	20.00%	32.00%	19.20%	11.52%	11.52%	5.76%
7-year	14.29%	24.49%	17.49%	12.49%	8.93%	8.92%	8.93%	4.46%

Shelley believes that the unit sales, variable costs and equipment cost projections are accurate to ±20%.
Questions:
Please show working.

Pro Forma Income Statements
Year		Year 1	Year 2	Year 3	Year 4	Year 5
Revenues
Variable costs
Fixed costs
Depreciation
EBIT
Taxes (35%)
Net income
OCF


Net Working Capital
Year	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Initial NWC
Ending NWC
NWC cash flow

Salvage Value
Market value of salvage
Book value of salvage
Taxes on sale:
Aftertax salvage value:

Project Cash Flows
Year	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
OCF
Change in NWC
Capital spending
Total cash flow
Cumulative cash flow




Question 1	Value	Decision
Payback Period
Question 2
NPV
Question 3
IRR
Question 4
Profitability Index
Question 5
Target Sales Price

Expert Solution

Functions

jeff jeffy answered 2 years ago

tens Units 1 5 2 3 4 8 5 2 5 6 9 6 1 3...

tens Units 1 5 2 3 4 8 5 2 5 6 9 6 1 3 5 4 7 9 7 0 0 4 5 6 9 9 8 1 3 5 6 8 9 9 0 1 2 3 5 9 The table represent a random sample of 31 test scores taken from a large lecture class. Find the following [round to 2 decimal points X. XX] a) [2 pts] Find the 5 number summary [L, Q1, Q2, Q3,...

The 1-year, 2-year, 3-year and 4-year zero rates are 2%, 3%, 4% and 5% per annum...

The 1-year, 2-year, 3-year and 4-year zero rates are 2%, 3%, 4% and 5% per annum (APR) with quarterly compounding/payment. a) What are the corresponding per annum zero rates with continuous compounding? b) What is today’s forward rate for an investment initiated one year from today and maturing 3 years from today? (Give your answer per annum with continuous compounding)? c) What is today’s forward rate for a one-year investment initiated three years from today? (Give your answer per annum with continuous...

Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales...

Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 50,000 65,000 115,000 70,000 80,000 90,000 Selling price per unit $7 per unit 1 Chapter 7: Applying Excel 2 3 Data Year 2 Quarter Year 3 Quarter 4 1 2 3 4 1 2 5 Budgeted unit sales 50,000 65,000 115,000 70,000 80,000 90,000 6 7 � Selling price per unit $8 per unit 8 � Accounts receivable, beginning balance...

White Corporation’s budget calls for the following sales for next year: Quarter 1 95,000 units Quarter...

White Corporation’s budget calls for the following sales for next year: Quarter 1 95,000 units Quarter 3 67,000 units Quarter 2 81,000 units Quarter 4 98,000 units Each unit of the product requires 5 pounds of direct materials. The company’s policy is to begin each quarter with an inventory of product equal to 5% of that quarter’s estimated sales requirements and an inventory of direct materials equal to 20% of that quarter’s estimated direct materials requirements for production. Required: 1....

Year 1 year 2 year 3 Sales Units 2500 2750 2900 sales Price Unit $150.00 $ ...

Year 1 year 2 year 3 Sales Units 2500 2750 2900 sales Price Unit $150.00 $ 150.00 $ 150.00 REVENUE $185,000 $250,000 $440,000 $375,000.00 $ 412,500.00 $ 435,000.00 Variable Costs: Direct Materials $20.00 $20.50 $26.01 Direct Labor $17.15 $17.60 $19.22 Variable OH $2.50 $2.53 $2.55 Fixed Costs: Rent 80,000 $80,000 $80,000 Supervision 200,000 $205,000 $210,250 Mixed Costs: Utilites-Fixed 20,000 20,000 20,000 Utilities-Variable $2.50 $2.50 $2.50 Total Costs: Variable cost per unit $42.15 $43.13...

Details Yrs. 1 2 3 4 5 6 7 8 Sales (units) 3000 5000 6000 6500...

Details Yrs. 1 2 3 4 5 6 7 8 Sales (units) 3000 5000 6000 6500 6000 5000 4000 3000 Fixed Costs 25000 25000 25000 25000 25000 25000 25000 25000 Annual Depreciation 114320 195920 139920 99920 71440 71440 71440 35600 1. Project X is being appraised and has the following details: The following information is also available: Unit selling price is expected to be $120 for the first 3 years then fall to $110 thereafter. Unit variable costs will remain...

Year Project A Expected Cash Flows ($) 0 (1,250,000) 1 75,000 2 218,750 3 535,000 4...

Year Project A Expected Cash Flows ($) 0 (1,250,000) 1 75,000 2 218,750 3 535,000 4 775,000 5 775,000 Year Project B Expected Cash Flows ($) 0 (1,050,000) 1 650,000 2 500,000 3 226,250 4 137,500 5 62,500 Metrics Payback Period (in years) (A)3.54 (B)1.8 Discounted payback period (in years) (A)4.58 (B)2.72 Net Present Value (NPV) (A)$160,816 (B)$151,742 Internal Rate of Return (A)18.90% (B)23.84% Profitability Index (A)1.13 (B)1.14 Modified Internal Rate of Return (MIRR) (A)17.82% (B)18.15% a). What are some...

Year Unit Sales 1 109,000 2 125,000 3 136,000 4 158,000 5 97,000 Production of the...

Year Unit Sales 1 109,000 2 125,000 3 136,000 4 158,000 5 97,000 Production of the implants will require $812,000 in net working capital to start and additional net working capital investments each year equal to 20% of the projected sales increase for the following year. (Because sales are expected to fall in Year 5, there is no NWC cash flow occurring for Year 4.) Total fixed costs are $194,000 per year, variable production costs are $290 per unit, and...

4. (a) Suppose that τσ=(1 5 2 3)(4) and στ=(1 2 4 5)(3) in S5. If...

4. (a) Suppose that τσ=(1 5 2 3)(4) and στ=(1 2 4 5)(3) in S5. If σ1 = 2, find σ and τ. (b) In Sn, show that σ = τ if and only if σ(τ)^(−1) = ε. ε is the identity permutation. Must be written as a proof. (c) Let σ=(1 2 3) and τ=(1 2) in S3. Show that S3={ε,σ,σ^2,τ,τσ,τ(σ)^2} and that σ^3=ε=τ^2 and στ=τ(σ)^2, then fill out the multiplication table for S3.

coffee tea juice 3 4 5 5 4 3 4 4 4 5 1 2 4...

coffee tea juice 3 4 5 5 4 3 4 4 4 5 1 2 4 2 2 Do a One-way ANOVA by hand (at least once in your life!) …Is there a difference in attention for those who drink coffee, tea, or juice during an 8 a.m. class? Utilize the five steps of hypothesis testing to analyze the following data (p<.01). Attention Ratings (1=no attention- 5=full attention)

Question