1. A project has an initial cost of $45,750, expected net cash inflows of $13,000 per year for 12 years, and a cost of capital of 9%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

2. A project has an initial cost of $51,925, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.

3. Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 years. It is inefficient compared to modern standards, though, and so the company is considering replacing it. The new milling machine, at a cost of $40,000 delivered and installed, would also last for 10 years and would produce after-tax cash flows (labor savings and depreciation tax savings) of $9,500 per year. It would have zero salvage value at the end of its life. The Project cost of capital is 12%, and its marginal tax rate is 35%. Should Chen buy the new machine?

4. Broussard Skateboard's sales are expected to increase by 25% from $8.2 million in 2016 to $10.25 million in 2017. Its assets totaled $6 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 55%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar. $ Assume that an otherwise identical firm had $7 million in total assets at the end of 2016. Broussard's capital intensity ratio (A0*/S0) is -Select-higher thanlower thanequal toItem 2than the otherwise identical firm; therefore, Broussard is -Select-lessmorethe sameItem 3capital intensive - it would require -Select-a smallera largerthe sameItem 4increase in total assets to support the increase in sales.