If Company XYZ plans to launch a new production line, and in year 1, will have sales revenue       

             $10,000,000, operating cost is 70% of the sales revenue, depreciation is $2,000,000, and tax rate    

              is 40%, what is the Company’s projected cash flow in year 1?

       b. If the Company’s launch of the new production line will cause the exit of an existing production line     

         that can generate $1,000,000 operating income before tax, how much will be the Company’s  

        projected cash flow in year 1, if we take this opportunity cost or cannibalization into the consideration?            

c. If the tax rate fell to 30%, what will be the project’s cash flow?

A standardized​ exam's scores are normally distributed. In a recent​ year, the mean test score was 21.4 and the standard deviation was 5.4. The test scores of four students selected at random are 15​, 22​, 9​, and 36. Find the​ z-scores that correspond to each value and determine whether any of the values are unusual.

The z-score for 15 is:

For the fiscal year that ended on September 30, 2017 the U.S. federal deficit was $666 billion, an increase of $80 billion from 2016. This was the second consecutive year the deficit has increased, following several years of decline. (The deficit was over $1 trillion in 2012 and had fallen to $438 billion in 2015, but the current deficit is more than $500 billion higher than the $161 billion deficit in 2007, the year the Great Recession began.) The Congressional Budget Office projects a slight decrease in the federal deficit to $581 billion for 2018, but predicts a widening of the deficit to almost $1.5 trillion by 2027 if current laws do not change.

In 2017, the deficit as a percentage of GDP was 3.5 percent, federal government spending was approximately $4 trillion (up more than 30 percent from 2008), while tax revenues were $3.3 trillion. Presently, the national debt stands at more than $20.6 trillion (104% of GDP), which equates to a debt of more than $63,000 per citizen and over $170,000 per taxpayer. You can view the national debt clock at: US Debt Clock.

Discuss the economic consequences of a rapidly increasing federal deficit and national debt. Should we be concerned about the sizes (and estimated future sizes) of the federal deficit and national debt, or are the concerns overblown? Who exactly do we owe this money to? How might the government reduce the deficit and debt numbers? The above questions are just a few relating to the federal deficit and national debt. Please do not feel limited by addressing just these questions, but feel free to expand your discussion to the wide variety of issues stemming from the growing federal deficit and national debt.

Herman Co. is considering a four-year project that will require an initial investment of $15,000. The base-case cash flows for this project are projected to be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected to be –$4,500 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.

What would be the expected net present value (NPV) of this project if the project’s cost of capital is 12%?

A.) $21,458

B.) $25,975

C.) $24,846

D.) $22,587

Herman now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $3,000 (at the end of year 2). The $3,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s –$4,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.

Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account.

A.) $28,158

B.) $31,998

C.) $30,718

D.) $25,598

What is the value of the option to abandon the project?

A.) $2,108

B.) $2,710

C.) $2,258

D.) $3,011

E.) $2,559

You invest $3108 at the beginning of every year and earn an annual rate of return of 6.4%, how much will you have in your account after 35 years? (Show your answer to the nearest cent. DO NOT round until after all calculations have been completed and you have reached your final answer.).

Sam and Sally are both 30 years old, and beginning in exactly 1 year they will save $24,000 per year for 30 consecutive years to support their retirement. When they reach retirement at age 60, they will begin to withdrawal an annuity amount per year to enjoy their retirement years. The withdrawals will start in one year, and continue for 25 consecutive years. What is the maximum amount they can withdrawal if interest rates are 3%?

Ward Corp. is expected to have an EBIT of $2,050,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $168,000, $91,000, and $118,000, respectively. All are expected to grow at 17 percent per year for four years. The company currently has $14,500,000 in debt and 830,000 shares outstanding. At Year 5, you believe that the company's sales will be $16,200,000 and the appropriate price–sales ratio is 2.3. The company’s WACC is 8.3 percent and the tax rate is 35 percent.

What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

That's the only information provided.

Share price            $

The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2017.

The Print Shop Fund records also revealed the following:

The following balances were observed in current asset and current liability accounts. ( ) denote credit balances:

Prepare a Statement of Cash Flows for the Village of Parry Print Shop Fund for the year ended April 30, 2017. Include the reconciliation of operating income to net cash provided by operating activities

“Suppose that you have saved €1,000 this year. Borrowing or lending is not possible because there are no financial markets. If you do not have an investment opportunity that will permit you to earn income with your savings, you will just hold on to the €1,000 and will earn no interest. However, Carl the carpenter has a productive use for your €1,000: he can use it to purchase a new tool that will shorten the time it takes him to build a house, thereby earning an extra €200 per year. If you could get in touch with Carl, you could lend him the €1,000 at a rental fee (interest) of €100 per year, and both of you would be better off. You would earn €100 per year on your €1,000, instead of the zero amount that you would earn otherwise, while Carl would earn €100 more income per year.

As we have seen, Carl the carpenter needs €1,000 for his new tool, and you know that it is an excellent investment opportunity. You have the cash and would like to lend him the money, but to protect your investment you have to hire a lawyer to write up the loan contract that specifies how much interest Carl will pay you, when he will make these interest payments, and when he will repay you the €1,000. Obtaining the contract will cost you €500. When you figure out this transaction cost for making the loan, you realise that you can’t earn enough from the deal (you spend €500 to make perhaps €100) and reluctantly tell Carl that he will have to look elsewhere.” (Mishkin, Matthews, Giuliodori, The Economics of Money, Banking and Financial Markets, 2013).

Can the deal (contract) still be made even with the €500 charged by the lawyer? How? Which variable in the contract can be changed and by how much?

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.