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Nash Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Nash, has gathered the following data concerning inventory.

At May 31, 2020, the balance in Nash’s Raw Materials Inventory account was $436,560, and Allowance to Reduce Inventory to Market had a credit balance of $29,710. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Nash’s May 31, 2020, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing.

(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020.

(a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market.

3. 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 rst four years are $50,000, $60,000, $70,000, and $60,000.

In the rst year, revenue will increase by $150,000 and operating costs will decrease by $30,000. The dierence

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 aect the project's NPV?

(b) How will the PVCCATS and the proceeds from the sale at the end of year 4 aect the project's NPV?

(c) How will net working capital in the next four years aect the project's NPV?

(d) What is the free cash ow in year 1?

(e) What is the NPV of the project?

Holly is considering a new project. The project will require $500,000 for new fixed assets, $208,000 for additional inventory, and $36,000 for additional accounts receivable. Short-term debt is expected to increase by $165,000. The project has a 6-year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 20 percent of their original 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 $875,000 and costs of $640,000. The tax rate is 34 percent and the required rate of return is 12 percent. What is the net present value of this project? "

please show all work

A firm is considers introducing a new production line for its new product the Squeaky Clean. The production start-up costs are estimated to be £30,000 while the cash revenues are estimated at £20,000 per year. Cash costs (including taxes) will be £14,000 per year. Production will be wound down in eight years’ time and the salvage value at this time will be £2,000. The discount rate on similar projects is 15%. The objective of the firm is to maximize shareholder wealth.

Required (a) Use the Net Present Value (NPV) method to evaluate whether the investment should take place.

(b) If there are 1,000 shares of stock outstanding, what will be the effect on the price per share of taking this investment? (3 amrks)

A bank has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 81 files in area A, their current customers, and find that 48 have defaulted. In area B, the new customers, another sample of 103 files shows 72 have defaulted on their loans. What is the Test Statistics to test the Null Hypothesis H0 : pA = pB against the alternative Ha : pA ≠ pB?

A firm producing computers considers a new investment which is about opening a new plant.

The project’s lifetime is estimated as 5 years and requires 22 million $ as investment cost. Salvage value of the project is estimated as 4 million $ (which will be received in the sixth year) However the firm prefers to show salvage value only as 2 million $. The firm uses 5-year straight-line depreciation.

It is estimated that the sales will be 12 million $ next year and then sales will grow by 20% each year.

It is estimated that fixed costs will be 1.5 million next year and then will grow by 5% each year.

Variable costs are projected %10 of sales each year.

This project, in addition, requires a working capital of $ 3 million in the first year, 4 million in the second year, 4 million in the third year, 3 million in the fourth year and 1.5 million in the fifth year.

Firm plans to use a debt/equity ratio of %50 in this project.

The company can borrow $ loan with an interest cost of 14% before tax. Corporate tax rate is 20%. The shares of this company in NYSE are selling at 8 $ and the stocks have approximately market risk and have a strong correlation with NYSE index. 10- year government bond yields at %12 and market risk premium is %8.

Given this information; find the NPV and IRR of the project; is this project feasible or not?

What is the result of higher WACC ? Can a company reduce its WACC ? If yes, how? Give numerical example related with this project and explain this topic briefly regarding to the capital structure theories.

Please solve this CLEARLY

Andrew Jim Moore. UC Berkeley.

Assume that inflation in Australia and New Zealand are currently equal at 4%. New information has arrived, suggesting that Australia can expect significantly higher inflation growth over the next year. In this case, PPP theory would predict Australia’s imports to ________, exports to ________, and the Australian dollar to _______ against the New Zealand dollar.

• Select a country as a possible new market for a new video game system, the M-Box by MES-Sim Corporation.
• Research and analyze that country.

Recommend whether the market should be developed, or not, by MES-Sim Corporation

The MIR requires teams to gather current, or the most recently available, data on the market’s people, economy, government, and technological status from online sources.