1- Mountain Health System, Inc. is a well-known and reputable supplier of integrated heart monitoring devices. The firm is currently debating whether to expand its sales overseas. While the firm expects an extra $10,400,000 in sales if it enters foreign markets, it also knows that 6% of its sales will ultimately be uncollectible. In addition, selling costs will be 4% on all new sales and the firm's production costs are 60% of sales. Mountain Health System's tax rate is 30%.

a) Calculate Mountain Health System's additional net income from the new sales.

b) If the average investment in accounts receivable is $2,000,000 and management requires that any new project earn a minimum of 12% return on investment. Should the firm enter the foreign markets? Please explain.

2- Find the following values by using excel

a. The future value of a lump sum of $8,000 invested today at 6 percent, annual compounding for 5 years.

b. The future value of a lump sum of $8,000 invested today at 6 percent, quarterly compounding for 5 years.

c. The present value of $8,000 to be received in 5 years when the discount rate is 6%, annual compounding.

d. The present value of $8,000 to be received in 5 years when the discount rate is 6% quarterly compounding.