Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 35,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $44.00 and will grow at 2.00% per year. The production costs are expected to be 55% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,300,000. It will be depreciated using MACRS, and has aseven-year MACRS life classification. Fixed costs will be $330,000 per year. Miglietti Restaurants has a tax rate of 40%. What is the operating cash flow for this project over these ten years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipment can be sold for $140,000 at the end of the ten-year project and the cost of capital for this project is 7%.
a) What is the operating cash flow for this project in year 1? year 2? year 3? year 4? year 5? year 6? year 7? year 8? year 9? year 10?
b) What is the after tax cash flow of the project of disposal?
c) What is the NPV of the project?
In: Finance
You receive an inheritance of a thirty-year annuity, which pays 1 at the end of the first year, 2 at the end of the second year, 1 at the end of the third year, 4 at the end of the fourth year, 1 at the end of the fifth year, etc. This pattern will continue such that 1 will be paid out at the end of 29th year and 30 will be paid out at the end of the 30th year. Find the present value of this inheritance if the annual effective interest rate is 4%(Answer: 120.17)
In: Finance
Program 3: Give a baby $5,000! Did you know that, over the last century, the stock market has returned an average of 10%? You may not care, but you’d better pay attention to this one. If you were to give a newborn baby $5000, put that money in the stock market and NOT add any additional money per year, that money would grow to over $2.9 million by the time that baby is ready for retirement (67 years)! Don’t believe us? Check out the compound interest calculator from MoneyChimp and plug in the numbers!
To keep things simple, we’ll calculate interest in a simple way. You take the original amount (called the principle) and add back in a percentage rate of growth (called the interest rate) at the end of the year. For example, if we had $1,000 as our principle and had a 10% rate of growth, the next year we would have $1,100. The year after that, we would have $1,210 (or $1,100 plus 10% of $1,100). However, we usually add in additional money each year which, for simplicity, is included before calculating the interest.
Your task is to design (pseudocode) and implement (source) for a program that 1) reads in the principle, additional annual money, years to grow, and interest rate from the user, and 2) print out how much money they have each year. Task 3: think about when you earn the most money!
Lesson learned: whether it’s your code or your money, save early and save often…
Sample run 1:
Enter the principle: 2000
Enter the annual addition: 300
Enter the number of years to grow: 10
Enter the interest rate as a percentage: 10
Year 0: $2000
Year 1: $2530
Year 2: $3113
Year 3: $3754.3
Year 4: $4459.73
Year 5: $5235.7
Year 6: $6089.27
Year 7: $7028.2
Year 8: $8061.02
Year 9: $9197.12
Year 10: $10446.8
Sample run 2 (yeah, that’s $9.4MM):
Enter the principle: 5000
Enter the annual addition: 1000
Enter the number of years to grow: 67
Enter the interest rate as a percentage: 10
Year 0: $5000
Year 1: $6600
Year 2: $8360
Year 3: $10296
Year 4: $12425.6
Year 5: $14768.2
.
.
Year 59: $4.41782e+06
Year 60: $4.86071e+06
Year 61: $5.34788e+06
Year 62: $5.88376e+06
Year 63: $6.47324e+06
Year 64: $7.12167e+06
Year 65: $7.83493e+06
Year 66: $8.61952e+06
Year 67: $9.48258e+06
please in pseudocode and c++. thank you! sorry about that.
In: Computer Science
A project requires an initial investment of $350,000 and will return $140,000 each year for six years.
|
Factors: Present Value of $1 |
Factors: Present Value of an Annuity |
||
|
(r = 10%) |
(r = 10%) |
||
|
Year 0 |
1.0000 |
||
|
Year 1 |
0.9091 |
Year 1 |
0.9091 |
|
Year 2 |
0.8264 |
Year 2 |
1.7355 |
|
Year 3 |
0.7513 |
Year 3 |
2.4869 |
|
Year 4 |
0.6830 |
Year 4 |
3.1699 |
|
Year 5 |
0.6209 |
Year 5 |
3.7908 |
|
Year 6 |
0.5645 |
Year 6 |
4.3553 |
If taxes are ignored and the required rate of return is 10%, what is the project's net present value (rounded to the nearest dollar)?
Group of answer choices
$259,742
$114,803
$340,000
$109,742
A project requires an initial investment of $350,000 and will return $140,000 each year for six years.
|
Factors: Present Value of $1 |
Factors: Present Value of an Annuity |
||
|
(r = 10%) |
(r = 10%) |
||
|
Year 0 |
1.0000 |
||
|
Year 1 |
0.9091 |
Year 1 |
0.9091 |
|
Year 2 |
0.8264 |
Year 2 |
1.7355 |
|
Year 3 |
0.7513 |
Year 3 |
2.4869 |
|
Year 4 |
0.6830 |
Year 4 |
3.1699 |
|
Year 5 |
0.6209 |
Year 5 |
3.7908 |
|
Year 6 |
0.5645 |
Year 6 |
4.3553 |
Ignoring qualitative issues and income taxes, should the company invest in this project?
Group of answer choices
No, because the net present value shows a return that is less than the company's required rate of return.
There is not enough quantitative information to answer this question.
No, because the internal rate of return cannot be calculated.
Yes, because the net present value shows a return that is above the company's required rate of return.
Clothing Products LLC manufactures shirts. The company is interested in outsourcing production to a reputable manufacturing company that can supply the shirts for $10 per unit. Clothing Products LLC produces 20,000 shirts each year. Variable production costs are $4 per unit and annual fixed costs are $160,000. If production is outsourced, all variable costs and 60 percent of annual fixed costs will be eliminated. Ignoring qualitative factors and income taxes, which is the best alternative?
Group of answer choices
Producing the shirts internally is the best option and results in $24,000 in savings compared to outsourcing production.
Outsourcing production is the best option and results in $64,000 in savings.
Producing the shirts internally is the best option and results in $64,000 in savings compared to outsourcing production.
Outsourcing production is the best option and results in $24,000 in savings.
In: Accounting
Sugar Land Company is considering adding a new line to its
product mix, and the capital budgeting analysis is being conducted
by a MBA student. The production line would be set up in unused
space in Sugar Land’ main plant. Total cost of the machine is
$260,000. The machinery has an economic life of 4 years, and MACRS
will be used for depreciation. The machine will have a salvage
value of 40,000 after 4 years.
The new line will generate Sales of 1,350 units per year for 4
years and the variable cost per unit is $100 in the first year.
Each unit can be sold for $200 in the first year. The sales price
and variable cost are expected to increase by 3% per year due to
inflation. Further, to handle the new line, the firm’s net working
capital would have to increase by $30,000 at time zero (The NWC
will be recouped in year 4). The firm’s tax rate is 40% and its
weighted average cost of capital is 10%.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
|
Depreciation |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
|
$ Sales |
||||
|
$ Variable costs |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
|
Sales |
||||
|
OCF |
|
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
|
CF of the project |
|
NPV = |
|
|
IRR = |
|
|
MIRR = |
|
|
PI |
In: Finance
During the current year, Knoxx County levied property taxes of $2,000,000, of which 1% is expected to be uncollectible. The following amounts were collected during the current year:
|
Prior year taxes collected within the first 60 days of the current year |
$ 50,000 |
|
Prior year taxes collected between 60 and 90 days into the current year |
120,000 |
|
Current year taxes collected in the current year |
1,800,000 |
|
Current year taxes collected within the first 60 days of the subsequent year |
80,000 |
What amount of property tax revenue should Knoxx County report in its government-wide statement of activities?
$2,000,000
$1,980,000
$1,800,000
$1,970,000
In: Accounting
PaperPro had previously acquired PaperExpo, which independently generates $800 million per year in revenues, with no material growth. The consolidated revenues for PaperPro (post-acquisition) are $1.5 billion in year 1, $1.8 billion in year 2 (the year of the acquisition), and $2.5 billion in year 3. If PaperPro closed the acquisition of PaperExpo on October 1 of year 2, what is the apples-to-apples organic growth for PaperPro in year 2 and year 3? How does this differ from reported revenue growth? Assume PaperExpo’s revenues are consolidated into PaperPro’s revenues only after the acquisition close and that the fiscal year closes for both companies on December 31 of each year.
In: Accounting
Calculate the Net Present Value given two proposed projects of AIM Manufacturing Corp.
Project # 1:
Initial Investment: $100,000
Cash Inflows:
Year 1: $45,000
Year 2: $48,000
Year 3: $55,000
Year 4: $75,000
Year 5: $150,000
Project # 2:
Initial Investment: $100,000
Cash Inflows:
Year 1: $65,000
Year 2: $45,000
Year 3: $25,000
Year 4: $10,000
Year 5: $1,000
What are the Payback Period for each project using the NPV Method? Which project would you select in you were looking for higher cash inflows in your capital budget? Why....
In: Finance
You are evaluating a project for your company. You estimate the sales price to be $200 per unit and sales volume to be 3,000 units in year 1; 4,000 units in year 2; and 2,500 units in year 3. The project has a three-year life. Variable costs amount to $50 per unit and fixed costs are $150,000 per year. The project requires an initial investment of $200,000 in assets which will be depreciated straight-line to zero over the three-year project life. The actual market value of these assets at the end of year 3 is expected to be $30,000. NWC requirements at the beginning of each year will be approximately 10 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 10 percent. What is the operating cash flow for the project in year 2?
You are evaluating a product for your company. You estimate the sales price of product to be $140 per unit and sales volume to be 10,400 units in year 1; 25,400 units in year 2; and 5,400 units in year 3. The project has a 3 year life. Variable costs amount to $65 per unit and fixed costs are $204,000 per year. The project requires an initial investment of $336,000 in assets which will be depreciated straight-line to zero over the 3 year project life. The actual market value of these assets at the end of year 3 is expected to be $44,000. NWC requirements at the beginning of each year will be approximately 13% of the projected sales during the coming year. The tax rate is 21% and the required return on the project is 8%. What will the year 2 free cash flow for this project be?
In: Accounting
Instructions JAVA PROGRAMMING
1. Ask the user for a year input (positive integer - should be between 1500 and 2019, inclusive).
2. If the year input is not between 1500 and 2019, do not check for leap year, rather print that this year cannot be checked.
3. Take a year input from the user (should be between 1500 and 2019)
4. If the input year is a leap year, print that year is a leap year; otherwise, print that the year is not a leap year.
5. Point of thought: how will you handle centurial years, i.e., years ending in 00, e.g., 1900, 1800, 1700, 2000 etc.?
Goals
File/Project Naming
Your project/file should be named “Main.java”.
Test Your Program
Sample Output
Your output should look like this:
This year cannot be checked. Try again!
This year cannot be checked. Try again!
Yes, 2016 is a leap year!
Nope, 1900 is NOT a leap year!
In: Computer Science