A firm utilizes a strategy of capital rationing, which is currently $375,000 and is considering the following two projects: Project A has a cost of $335,000 and the following cash flows: year 1 $140,000; year 2 $150,000; and year 3 $100,000. Project B has a cost of $365,000 and the following cash flows: year 1 $220,000; year 2 $110,000; and year 3 $150,000. Using a 6% cost of capital, which decision should the financial manager make?

Select project A.

Select project B.

Do not select either project.

Select both projects.

Calculate the following information for a $50,000 loan with four (4) annual payments that have a variable interest rate each year.

In year 1, the interest rate is 9.50%.
In year 2, the interest rate is 8.75%.
In year 3, the interest rate is 11.50%.
In year 4, the interest rate is 5.00%

In order for your answers to be marked correct by Canvas, remember to include dollar signs ($), commas for each thousand (000) dollars, and to the nearest whole cent.

Ramirez company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product.

A. Determine the machine's second year depreciation and year end book value under the straight-line method.

B. Determine the machine's second year depreciation using the units-of-production method.

C. Determine the machine's second-year depreciation using the double-declining-balance method.

Suppose a company has two mutually exclusive projects, both of which are three years in length. Project A has an initial outlay of $6,000 and has expected cash flows of $4,000 in year 1, $5,000 in year 2, and $5,000 in year 3. Project B has an initial outlay of $9,000 and has expected cash flows of $2,000 in year 1, $4,000 in year 2, and $5,000 in year 3. The required rate of return is 10% for projects at this company. What is the net present value for the best project? (Answer to the nearest dollar.)

Q) A firm has a WACC of 14.49% and is deciding between two mutually exclusive projects. Project A has an initial investment of $60.09. The additional cash flows for project A are: year 1 = $19.19, year 2 = $38.50, year 3 = $47.11. Project B has an initial investment of $70.51. The cash flows for project B are: year 1 = $54.40, year 2 = $48.97, year 3 = $20.74. Calculate the Following:

1)payback period for Project A

2)Payback period for Project B

3)NPV for project A

4) NPV for project B

Suppose a company has two mutually exclusive projects, both of which are three years in length. Project A has an initial outlay of $7,000 and has expected cash flows of $3,000 in year 1, $4,000 in year 2, and $4,000 in year 3. Project B has an initial outlay of $10,000 and has expected cash flows of $2,000 in year 1, $4,000 in year 2, and $5,000 in year 3. The required rate of return is 12% for projects at this company. What is the net present value for the best project? (Answer to the nearest dollar.)

1. I have $400,000 in the bank now. I plan to withdraw $20,000 at the end of this year. Each subsequent end of year withdrawal will increase by 8%. If I earn 10% per year on my investments in the first 3 years, then 5% per year in the next 2 years, and 4% per year in the following 3 years,
   1. Determine how much money I will have at the end of 8 years.
   2. Determine the initial withdrawal amount at the end of this year that will leave me with no money at the end of 8 years using either Solver or Goal Seek.

Suppose a company has two mutually exclusive projects, both of which are three years in length. Project A has an initial outlay of $8,000 and has expected cash flows of $3,000 in year 1, $4,000 in year 2, and $6,000 in year 3. Project B has an initial outlay of $7,000 and has expected cash flows of $4,000 in year 1, $5,000 in year 2, and $6,000 in year 3. The required rate of return is 13% for projects at this company. What is the net present value for the best project? (Answer to the nearest dollar.)

You have $5,000 to invest for the next year and are considering three alternatives: A money market fund with an average maturity of 30 days offering a current yield of 2.0% per year A 1-year savings deposit at a bank offering an interest rate of 4.0% A 20-year U.S. Treasury bond offering a yield to maturity of 4.0% per year A 20-year corporate bond offering a yield to maturity of 7. What is the risk profile of each of these assets? What role does your forecast of future interest rates play in your decisions?