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.

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....

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?

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

1. Gain experience in input taking using the scanner class in Java.
2. Gain experience in if/else selection statement in Java.

File/Project Naming

Your project/file should be named “Main.java”.

Test Your Program

• Once the code is typed, you will compile+run (execute) your code.
• You will input the year integer.
• See the output given by your code.

Sample Output

Your output should look like this:

• What year do you want to test? (make sure it's between 1500 and 2017): 1400

This year cannot be checked. Try again!

• What year do you want to test? (make sure it's between 1500 and 2017): 2018

   This year cannot be checked. Try again!

• What year do you want to test? (make sure it's between 1500 and 2017): 2016

• Yes, 2016 is a leap year!

• What year do you want to test? (make sure it's between 1500 and 2017): 1900

• Nope, 1900 is NOT a leap year!

The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

c. Suppose the appropriate discount rate is 13 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV           $

Problem 8-2 Calculating Project NPV

The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV           $

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1:

During Year 1, the machine produced 56,000 units, and during Year 2 it produced 58,000 units.

Required
a. Determine the amount of depreciation expense for Year 1 and Year 2 using straight-line method.
b. Determine the amount of depreciation expense for Year 1 and Year 2 using double-declining-balance method.
c. Determine the amount of depreciation expense for Year 1 and Year 2 using units of production method.
d. Determine the amount of depreciation expense for Year 1 and Year 2 using MACRS, assuming that the machine is classified as seven-year property. (Round your answers to the nearest dollar amount.)

MACRS table:

The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)

b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

c. Suppose the appropriate discount rate is 11 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV           $