NPV.  Miglietti Restaurants is looking at a project with the following forecasted​ sales: ​ first-year sales quantity of 36,000​, with an annual growth rate of 4.00​% over the next ten years. The sales price per unit will start at ​$45.00 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 ​$2,400,000. It will be depreciated using​ MACRS, and has a​ seven-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 ​$140,000at the end of the​ ten-year project and the cost of capital for this project is 8​%.

What is the operating cash flow for this project in year​ 1?​ (Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 2? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 3? (Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 4? (Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 5? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 6?​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 7? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 8? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 9? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 10? ​(Round to the nearest​ dollar.)

What is the​ after-tax cash flow of the project at​ disposal? (NEAREST DOLLAR)

What is the NPV of the​ project? (Nearest dollar)

Data Table: MACRS Fixed Annual Expense Percentages by Recovery Class        

Question 22

A Belgium subsidiary's beginning and ending trial balances appear below: Dr (Cr) January 1 December 31 Cash, receivables € 1,500 € 1,200 Inventories 3,000 3,500 Plant & equipment, net 30,000 39,000 Liabilities (18,500) (27,200) Capital stock (4,000) (4,000) Retained earnings, beginning (12,000) (12,000) Sales revenue -- (15,000) Cost of sales 9,500 Out-of-pocket selling & administrative expenses -- 4,000 Depreciation expense -- 1,000 Total € 0 € 0 Exchange rates ($/€) are: Beginning of year $1.25 Average for year 1.22 End of year 1.20 The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and out-of-pocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for €10,000 when the exchange rate was $1.23. Depreciation for the year includes €200 related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year. If the subsidiary's functional currency is the euro, what is its exposure to translation gains and losses as of the beginning of the year? Select one: A. € 16,000 B. €(17,000) C. € 1,500 D. €(18,500)

Question 23

A Belgium subsidiary's beginning and ending trial balances appear below: Dr (Cr) January 1 December 31 Cash, receivables € 1,500 € 1,200 Inventories 3,000 3,500 Plant & equipment, net 30,000 39,000 Liabilities (18,500) (27,200) Capital stock (4,000) (4,000) Retained earnings, beginning (12,000) (12,000) Sales revenue -- (15,000) Cost of sales 9,500 Out-of-pocket selling & administrative expenses -- 4,000 Depreciation expense -- 1,000 Total € 0 € 0 Exchange rates ($/€) are: Beginning of year $1.25 Average for year 1.22 End of year 1.20 The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and out-of-pocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for €10,000 when the exchange rate was $1.23. Depreciation for the year includes €200 related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year. If the subsidiary's functional currency is the U.S. dollar, what is its exposure to remeasurement gains and losses at the end of the year? Select one: A. € 16,000 B. €(27,200) C. € 16,500 D. €(26,000)

NPV.  Miglietti Restaurants is looking at a project with the following forecasted​ sales: ​ first-year sales quantity of 33,000​, with an annual growth rate of 4.00​% over the next ten years. The sales price per unit will start at ​$43.00 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 a​ seven-year MACRS life classification. Fixed costs will be ​$360,000 per year. Miglietti Restaurants has a tax rate of 35​%. 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 ​$160,000 at the end of the​ ten-year project and the cost of capital for this project is 8​%.

What is the operating cash flow for this project in year​ 1?​ (Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 2?  ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 3?  ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 4? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 5? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 6? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 7? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 8?​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 9? ​(Round to the nearest​ dollar.)

What is the operating cash flow for this project in year​ 10?​(Round to the nearest​ dollar.)

What is the​ after-tax cash flow of the project at​ disposal? ​(Round to the nearest​ dollar.)

What is the NPV of the​ project? ​(Round to the nearest​ dollar)

Data Table

MACRS Fixed Annual Expense Percentages by Recovery Class     

The product development department of Dalglish plc is contemplating renting a factory building on a four-year lease from 1 January Year 1, investing in some new plant and using it to produce a new product, code named DAG7. Since there appears to be no possibility of the plant continuing to be economically viable beyond a four-year life, it has been decided to assess the new product over a four-year manufacturing and sales life.

Under the lease the business will pay £100,000 annually. The plant is expected to cost £600,000. This will be bought and paid for on 1 January Year 1 and is expected to be scrapped (with zero proceeds) on 31 December Year 4. The business will depreciate this asset, in its accounts, on a straight-line basis (25 per cent each year).

Each unit of DAG7 is estimated to give rise to a variable labour cost of £200 and a variable material cost of £100. DAG7 manufacture will be charged with an annual share of the business’s administrative costs, totalling £150,000 each year. Manufacture and sales of DAG7s are expected to increase total administrative costs by £90,000 each year.

Manufacture and sales of DAG7s are expected to be as follows:

These will be sold for an estimated £1,400 each.

For investment appraisal purposes you should assume that all cashflows relating to revenue and costs occur at the end of the year to which they relate.

The business’s accounting year end is 31 December each year. It has been decided, given the level of risk involved with the project to use a discount rate of 15 per cent a year.

An extract from the present values tables is given here:

Required

1. Identify the annual net relevant cash flows and use this information to assess the project on a net present value basis at 1 January Year 1.                                                          

2. Estimate the internal rate of return of the project.                                                           

3. Identify any other factors that Dalglish plc should consider when evaluating whether to proceed with this project, and recommend whether or not you believe the investment in DAG7 should be undertaken.                                                                                                 

Prepare an amortization schedule for a five-year loan of $84,000. The interest rate is 8% per year and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?

Provide another amortization schedule if you must pay $8,400 toward the principle each year instead of equal annual payments. How much interest is paid in the third year? Explain why the third year interest paid in the case of equal payment is different from when you must to pay $8,400 toward the principle every year.  

4.A machine cost $200,000 and has a salvage value of $100,000 if kept for one year. The salvage value will decrease by $50,000 in years 2 and 3 and remain zero after year 3. The operating costs are $50,000 the first year and increase by $50,000 per year. So operating costs in year two will be $100,000, and in year three $150,000 and so on. How long should the equipment be kept so that annual cost is minimized if the MARR is 10%/year compounded annually or stated another way what is the economic service life (ESL) and what is the associated annual cost for this service life?

Please solve with no table or excel

A stock market investor is interested in determining whether there is a significant difference in the P/E (price to earnings) ratio for companies from one year to the next. Six companies are randomly selected and their P/E ratios for Year 1 and Year 2 are recorded. Are the P/E ratios for Year 1 greater than for Year 2? Use a 10% level of significance.

State the null and alternative hypotheses for a one — sided test.

Find the differences.

Find the mean of the differences.

.

Digg company is evaluation two projects for next year’s capital budgeting. The after-tax cash flow ($) (including depreciation) are following:

Project A                              Project B

Year 0    -6000 -17500

Year 1    2000                                       5600

Year 2    2000                                       5600

Year 3    2000                                       5600

Year 4    2000                                       5600

Year 5    2000                                       5600

Year 6    4000                                       9000

If company’s WACC is 13%, find NPV, IRR, Payback and discount payback for each project. If the projects are mutually exclusive what is your recommendation to the company.

Specific help and showing of work for the payback discount please!!

1. The University of Amazon faculty have just signed a new three-year contract that included pay rate increases for the next three years of 6% (first year), 5% (second year), and 4% (third year). Write a program that inputs the current salary and the current year. Program MUST include at least one function. It can be a void function or a data type function whichever you choose. Output should include year and salary for each year. For example:

2020 $xx,xxx.xx

2021 $xx,xxx.xx

2022 $xx,xxx.xx

2023 $xx,xxx.xx

Test Data: 2020, 43897.00

Program is in c++.