McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500 thousand. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax). To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

6. Create an after-tax cash flow timeline.

7. What are the total expected cash flows at the end of year six? The $4.3 million is an opportunity cost and must be included at date 0 as a cash outflow. If the project is accepted, however, the land can be sold in six years for $5.4 million.

8. Find the NPV using the after-tax WACC as the discount rate.

9. Find the IRR.

10. Should the project be accepted? Discuss whether NPV or IRR creates the best decision rule.

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax).To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

Questions Below

2. What will be the value of the plant and equipment for tax purposes in year six? Will it be sold for a gain or a loss, and what will the tax effect be?

3. What is the weighted average cost of capital (WACC)?

4. What is the salvage cash flow of the new equipment? Include the income tax effect.

Bradley-Link’s December 31, 2018, balance sheet included the following items:

Long-Term Liabilities

($ in millions) 7.0% convertible bonds, callable at 102 beginning in 2019, due 2022 (net of unamortized discount of $3) [note 8] $247

11.0% registered bonds callable at 105 beginning in 2028, due 2032 (net of unamortized discount of $1) [note 8] 56

Shareholders’ Equity 5 Equity—stock warrants

Note 8: Bonds (in part) The 7.0% bonds were issued in 2005 at 98.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of the Company’s no par common stock.

The 11.0% bonds were issued in 2009 at 103 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitles the holder to purchase one share of the Company’s no par common stock for $20, beginning 2019.

On January 3, 2019, when Bradley-Link’s common stock had a market price of $27 per share, Bradley-Link called the convertible bonds to force conversion. 90% were converted; the remainder were acquired at the call price. When the common stock price reached an all-time high of $32 in December of 2019, 40% of the warrants were exercised.

Required: 1. Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2005 and 2009.

2. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019 and the retirement of the remainder.

3. Assume Bradley-Link induced conversion by offering $130 cash for each bond converted. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019.

4. Assume Bradley-Link induced conversion by modifying the conversion ratio to exchange 55 shares for each bond rather than the 50 shares provided in the contract. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019.

5. Prepare the journal entry to record the exercise of the warrants in December 2019.

please make sure to do the p values. this is what I need to fill in:

Three systems were compared to see if they have similar output in terms of products per hour. Determine if there is evidence of a difference in mean output in the three systems. Use a 0.05 level of significance.

1.) What is the correct hypotheses statements?

2.)What is the F-statistic for the one-way ANOVA? Round to 4 decimal places.

3.)What is the p-value of the F statistic? Enter your answer with 4 decimal places.

4.)Should the null hypothesis be rejected or not? And are post-hoc tests needed?

FIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.

3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost as of June 30.
5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

You have collected the following data on the returns of George Aviation (GA) and Aw Under Bins Suction (AUB) over the last 10 years:

Given this information, find the optimal weights of a portfolio that consists of these two securities assuming a minimum acceptable return of 2%. Then, calculate the return on the optimal portfolio, its standard deviation, and its safety-first ratio.

The following data for Throwback Industries Inc. relate to the payroll for the week ended December 9, 20Y8:

Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Medicare tax is 1.5% of each employee’s annual earnings. The next payroll check to be used is No. 901.

8

IP Two strings that are fixed at each end are identical, except that one is 0.530 cm longer than the other. Waves on these strings propagate with a speed of 34.2 m/s , and the fundamental frequency of the shorter string is 217 Hz . Part A What beat frequency is produced if each string is vibrating with its fundamental frequency? fbeat = nothing Hz Request Answer Part B Does the beat frequency in part (a) increase or decrease if the longer string is increased in length? Does the beat frequency in part (a) increase or decrease if the longer string is increased in length? increases decreases Request Answer Part C Repeat part (a), assuming that the longer string is 0.761 cm longer than the shorter string. fbeat = nothing Hz Request Answer Provide Feedback

Create an array list (names) that will hold the names of several hall of fame soccer players.

2. Place your name on the screen as the master recorder:

             “Master Hall of Fame Recorder: John Paul Jones”

3. Ask the user how many names they would like to record. (input 5 when the program runs)

4. Create a loop that will ask for the “Hall of fame member #1: “, etc Add in the following names:

1. Pele
2. Rooney
3. Maradona
4. Messi
5. Neymar

5. Fill the array list with the names input by the user.

6. Keep track of the grand total of the names in the fill loop.

7. In a separate enhanced (range based) for loop, print the names back out on the screen, following the same format as in step 4.

8. Add in a 6^th player named “Hamm”.

9. Using the size function, label and report the number of names recorded.

        There are ... hall of fame players recorded.

10. Write the code that will remove the last name “Rooney” from the array list.

11. Label and report the number of names recorded.

         There are now … hall of fame players recorded.

12. Clear all elements from the array list.

13. Label and report the number of players recorded.

    After clearing all data, there are …hall of fame players recorded

14. Give some clever goodbye message.

Use good spacing in the code and the output. Print the code and a screenshot and turn it in. Submit to Canvas. No screen shot required.