Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $150,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 7% are projected to be uncollectible. Additional collection costs are projected to be 3% of incremental sales (whether they actually end up collected or not), and production and selling costs are projected to be 80% of sales. Your firm expects to pay a total of 40% of its income after expenses in taxes.

1) Compute the incremental income after taxes that would result from these projections:

2) Compute the incremental Return on Sales if these new credit customers are accepted: If the receivable turnover ratio is expected to be 3 to 1 and no other asset buildup is needed to serve the new customers…

3) Compute the additional investment in Accounts Receivable

4) Compute the incremental Return on New Investment

5) If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

Admitting New Partner With Bonus

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $78,000 and $46,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $32,000.

a. Determine the recipient and amount of the partner bonus.
$ Valeria Solano

Feedback

a. Determine the total capital, including the new contribution. Calculate the new partners' share of the total capital. If the new partner's contribution exceeds his share of the capital, the bonus goes to the current partners. If the new partner's share of the capital exceeds the contribution, the bonus goes to the new partner.

b. Provide the journal entry to admit Solano into the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.

A firm is considering an investment in a new machine with a price of $17.6 million to replace its existing machine. The current machine has a book value of $7.3 million and a market value of $6 million. The new machine is expected to have a four-year life, and the old machine has four years left in which it can be used. If the firm replaces the old machine with the new machine, it expects to save $7.25 million in operating costs each year over the next four years. Both machines will have no salvage value in four years. If the firm purchases the new machine, it will also need an investment of $440,000 in net working capital. The required return on the investment is 11 percent, and the tax rate is 24 percent. Assume the company uses straight-line depreciation.

A. What is the NPV of the decision to purchase a new machine? (round to 2 decimal places) B. What is the IRR of the decision to purchase a new machine (round to 2 decimal places) C. What is the NPV of the decision to purchase the old machines? (round to 2 decimal places) D. What is the IRR of the decision to purchase the old machines? (round to 2 decimal places)

C++

9.12: Element Shifter Write a function that accepts an int array and the array’s size as arguments. The function should create a new array that is one element larger than the argument array. The first element of the new array should be set to 0. Element 0 of the argument array should be copied to element 1 of the new array, element 1 of the argument array should be copied to element 2 of the new array, and so forth. The function should return a pointer to the new array. Demonstrate the function by using it in a main program that reads an integer N (that is not more than 50) from standard input and then reads N integers from a file named data into an array. The program then passes the array to your element shifter function, and prints the values of the new expanded and shifted array on standard output, one value per line. You may assume that the file data has at least N values. Prompts And Output Labels. There are no prompts for the integer and no labels for the reversed array that is printed out. Input Validation. If the integer read in from standard input exceeds 50 or is less than 0 the program terminates silently.

Suppose you need to decide whether to keep a machine or replace it with a new one:

Old machine: The old machine can operate for 5 years with operating cost of $120,000 per year.

New machine: Replacing the old machine with a new one requires a capital cost of $250,000 in year zero (assume that there is zero salvage value for old machine). The capital cost is depreciable from year 0 to year 5 (over six years) based on MACRS 5-year life depreciation with the half year convention (table A-1 at IRS). The new machine has a lower operating cost of $45,000 per year for 5 years (from year 1 to year 5).

Assume both machines produce similar good with similar value that yields similar revenue.

Consider income tax of 35% and a discount rate of 10% annually. In present discounted value terms, how much will you save by replacing the old machine with the new machine?

(Note: What you are being asked to do here is to conduct incremental NPV analysis on the new machine versus the old machine, NPV_{new machine - old machine}.)

Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks.   Sales are projected to increase by $150,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 7% are projected to be uncollectible. Additional collection costs are projected to be 3% of incremental sales (whether they actually end up collected or not), and production and selling costs are projected to be 80% of sales. Your firm expects to pay a total of 40% of its income after expenses in taxes.

1)Compute the incremental income after taxes that would result from these projections:

2)Compute the incremental Return on Sales if these new credit customers are accepted:

If the receivable turnover ratio is expected to be 3 to 1 and no other asset buildup is needed to serve the new customers…

3)Compute the additional investment in Accounts Receivable

4)Compute the incremental Return on New Investment

5)If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

Corriedale Ltd plan to introduce a new line of organically produced wool for textile production. The new wool will generate incremental revenues of $57,000 per year for 8 years. The incremental operating costs of producing the wool are projected to be $20,000 per year. As a result of the new type of wool, demand for Corriedale’s other products will decrease significantly. Corriedale estimate that EBITDA from other product lines will fall by $10,000 per year as customers switch to the organic wool. The initial capital expenditure to purchase wool processing equipment will be $70,000. Producing and distributing the new wool will increase the working capital requirements of the business by $4,000 for the life of the project. This investment in working capital will be fully recovered when the new wool is discontinued in 8 years. For tax purposes, the wool processing equipment can be depreciated on a straight-line basis to zero over 8 years. Corriedale expect that at the end of the 8 years the scrap value of the equipment will be $12,000. Corriedale face a corporate tax rate of 30%. Compute the net incremental cash flow for the new organic wool for its final year (only the final year is required).

Java Code Question:
The program is supposed to read a file and then do a little formatting and produce a new txt file. I have that functionality down.

My problem is that I also need to get my program to correctly identify if a file is empty, but so far I've been unable to. Here is my program in full:

import java.io.*;

import java.util.Scanner;

public class H1_43 {

public static void main(String[] args) {

Scanner scanner = new Scanner(System.in);

System.out.print("Enter java file: ");

String fileName = scanner.nextLine();

if (fileName.isEmpty()) {

System.out.println("This is an empty file");

} else {

try {

Scanner fileReader = new Scanner(new File(fileName));

PrintWriter printWriter = new PrintWriter(new FileWriter(fileName + ".txt"));

int lineNumber = 1;

while (fileReader.hasNextLine()) {

String line = fileReader.nextLine();

printWriter.printf("[%03d]", lineNumber++);

printWriter.println(line);

printWriter.flush();

}

fileReader.close();

printWriter.close();

} catch (FileNotFoundException e) {

System.out.println("Error: Unable to open/read data from file: " + fileName);

System.exit(0);

} catch (IOException e) {

System.out.println("Error: Unable to open/write data to file: " + fileName);

System.exit(0);

}

System.out.println("File generated successfully.");

}

}

}

I am working on these study questions and am having trouble understanding how it all works together. Any help would be greatly appreciated!!

An all equity firm is expected to generate perpetual EBIT of $50 million per year forever. The corporate tax rate is 0% in a fantasy no tax world. The firm has an unlevered (asset or EV) Beta of 1.0. The risk-free rate is 5% and the market risk premium is 6%. The number of outstanding shares is 10 million.

1. Calculate the existing WACC of this all equity or unlevered firm. Calculate the total value of

this all equity firm and the existing share price.

2. The firm decides to replace part of the equity financing with perpetual debt. The firm issues

$100 million of permanent debt at the riskless interest rate of 5%, and repurchases $100 million of equity.

A. Find the new value of the levered firm.
B. Find the new number of shares outstanding, and the new share price.

3. Calculate the new equity Beta, new cost of equity, and new WACC following this capital

structure change. Assume a debt beta of zero.