1. A new machine will cost $600,000 including delivery and installation. The new unit has a CCA depreciation rate of 25 percent. At the end of four years, it will be sold for $100,000. The net working capital requirement required at the beginning of the first four years are $50,000, $60,000, $70,000, and $60,000.

   In the first year, revenue will increase by $150,000 and operating costs will decrease by $30,000. The difference between them, R−C, will grow at 3 percent. The tax rate is 30 percent, and the discount rate is 14 percent.

   (a) How will R − C in the next four years affect the project’s NPV?
   (b) How will the PVCCATS and the proceeds from the sale at the end of year 4 affect the project’s NPV?

   (c) How will net working capital in the next four years affect the project’s NPV? (d) What is the free cash flow in year 1?

   (e) What is the NPV of the project?

A new instruction is to be included in our core MIPS instruction subset.

This new true-op instruction is addm rt,disp(rs) which computes the sum of the contents of a memory word plus the contents of the rt register and places the sum back into the rt register.

a) Show the MIPS machine code format required for this new true-op instruction.

b) Are any changes to the multi-cycle datapath required to support this new true-op instruction? If so, describe the required changes.

c) Describe how the FSM (finite state machine) for our MIPS core instruction subset requires to be modified to support this new true-op instruction while continuing to support the other instructions within the subset without changing their behavior. In particular, what new or modified states, control signals and transitions are required?

Herrera Music is considering the sale of a new sound board used in recording studios.  The new board would sell for $25,500 and the company expects to sell 1,400 per year.  The company currently sells 1,900 units of its existing model per year.  If the new model is introduced, sales of the existing model will fall to 1,720 units per year.  The old board retails for $21,400.  Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be $1,350,000 per year and fixed costs are $1,250,000 per year.  If the tax rate is 38 percent, what is the annual OCF for the project? Please post pictures on how you do this in excel step by step thank you !

You have been hired as the new cost accountant & operations manager for a new tax practice in Fayetteville, NC. You are responsible for several things that relate to a new tax office and ultimately the cost per tax return.

You do not do any tax preparation work, so your salary is not in the product cost.

Your salary is $48,000 per year, plus benefits, and you get $1.00 per tax return as an incentive.

Based on the following information, construct a memo that gives CVP analysis, the variable costs and fixed costs for the firm. Your final goal is to develop a cost per tax return to charge to potential clients. This is a real-world application and can have positive and negative issues.

Cost Data:

$5.00 per tax return for paper and printing

$5.00 per tax return for software

$40.00 per tax return for direct labor. Mr. McKenzie has agreed to prepare all tax returns for $40.00 per hour and can do all tax returns in 1-hour. He is an independent contractor, thus no payroll taxes or benefits.

The partner reviews the tax returns, and spends 10 minutes per return or $10.00 in review. This is QC for the process and not direct labor.

The partner makes $5,000 per month as a draw. There are no taxes paid by the practice, as this is a partnership. His wife works as the receptionist and is paid $3,000 per month, as a draw.

Your taxes, benefits and insurance are $3,000 per month for computation purposes.

Firm costs:

Rent- $1,500 per month

Phone/Internet- $500 per month

Copier- $500 per month

Utilities- $500 per month

Supplies- $1,000 per month

Business Insurance- $250 per month

Errors and Omission Insurance $250 per month.

Depreciation on computer and fixtures is $500 per month.

Miscellaneous firm costs are $500 per month and are not allocated to tax preparations.   

You expect to do 180 tax returns per month.

Presentations-

Memo format,

1-    Firm Name, location, website, and any marketing ideas

2-    Vision Statement

3-    Core Competencies

4-    Variable Costs- list and explain variable costs

5-    Fixed Costs- List and explain fixed costs

6-    Conclusion and any comments

7-    Price per tax return to charge clients

Is the decision to raise approximately $20 million to finance the new division exclusively using new equity likely to affect HK’s WACC? Explain why or why not in terms of financial leverage, component costs, and capital structure. What is the likely impact? (Note: A recalculation of the WACC is not required for this question.)

Dysound Inc. is considering a new project. The project will require $325,000 for new fixed assets, $95,000 for additional inventory and accounts receivable (working capital). The project has a 5-year life. The fixed assets belong to a 30% CCA class. At the end of the project there is no salvage cost. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $554,000 and costs of $430,000. The tax rate is 38% and the required rate of return is 15%. A) Find the NPV for the project. B) Find the PV of the Operating Cash Flow. C) Find the Project's total cash flow for the 1st year of the project

Nature’s Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 5,700 units at $54 each. The new manufacturing equipment will cost $129,600 and is expected to have a 10-year life and $9,900 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis:

Direct labor   $9.20
Direct materials   30.00
Fixed factory overhead-depreciation   2.10
Variable factory overhead   4.60
    Total   $45.90
Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.

Out of Eden, Inc.
Net Cash Flows

Year 1   Years 2-9   Last Year
Initial investment   $
Operating cash flows:          
Annual revenues   $
307,800
$
$
Selling expenses  
Cost to manufacture  
Net operating cash flows   $
$
$
Total for Year 1   $
Total for Years 2-9       $
Residual value          
Total for last year           $

New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is partially correct.

The cost of equipment purchased by Indigo, Inc., on June 1, 2017, is $ 101,460. It is estimated that the machine will have a $ 5,700 salvage value at the end of its service life. Its service life is estimated at  7 years, its total working hours are estimated at  47,880, and its total production is estimated at  598,500 units. During 2017, the machine was operated  6,840 hours and produced  62,700 units. During 2018, the machine was operated  6,270 hours and produced  54,720 units.

Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.

Listed below are two new researches by the IBM company .

A radical new recycling process

The biggest threat to our planet are humans, due to our waste and pollution. Plastic is one major issue, as it pollutes our planet on a daily basis and the predictions are that in 2050, there will be more plastic in our oceans than fishes. In order to prevent that from happening, IBM Researchers have invented the VolCat, which will make the recycling of plastic more efficient. This new recycling concept will break down all kinds of plastic, regardless if it is colored or not, clean or dirty. Hence, households won’t have to separate and recycle their plastic at home anymore, since the VolCat will use all types of plastic together. VolCat is a catalytic chemical process, which dissolves polyester plastics. Once it is digested, it can then be reused for new plastic manufacturing machines (IBM Research, n.d.).

Heavy Metal Free Batteries:

IBM is currently working on new battery technologies that are free of heavy metals such as cobalt, nickel, lithium, and other metal types. The main objectives of this project are to lower the cost of batteries, charge faster, higher power density, higher energy density, better efficiency, and lower flammability of batteries currently being used. They expect these batteries to be used in electronics, airplanes, cars, and any other product that requires mobile power. They are currently working with Mercedes-Benz Research and Development, Central Glass and battery manufacturers to develop this technology (Na, 2019).

In your own word discuss how both research can be beneficial to the future ? give a thorough explanation