$1.$ The American company Green Plant Inc. $($supplier$)$ has signed a contract with the Argentinian company Agua Pura $($buyer$),$ to install a new bottling line in its old plant located in Buenos Aires. The total length of the contract is $12$ months. Green Plant Inc. will supply the equipment, the engineering, the technical and administrative staff, the computer equipment, and software. It will employ local laborers in Argentina for the plant construction. The value of the contract between Agua Pura and Green Plant is $$2,000,000.$ Assume the following parameters:

i$.$ The construction will start in the month of April.

ii$.$ The contract establishes one advance payment in the third month for $$200,000.$

iii. Monthly fixed cash inflow of $$175,000.$

iv$.$ A shareholder will invest $$75,000$ at the beginning of the project to fund working capital for this contract with dividends payable at maturity of the contract.

v$.$ Accounts payable amounts to $$30,000$ for the first month and grows at a rate of $10\%$ every month.

vi$.$ Salaries and wages payable amounts to $$23,500$ for the first month and grow at a rate of $5\%$ every month.

vii. Taxes are fixed at $$2,500$ per week $($assume $52$ weeks per year for the purpose of the calculations$).$

viii. The company takes a loan in the third month of operation for $$154,000.$

ix$.$ The loan repayment plan states a fixed monthly payment of $$5,000,$ plus $15\%$ annual interest on the outstanding loan balance. Monthly payments will start the month after receiving the loan funds.

x$.$ In the second month, Green Plant acquires machinery for $$350,000.$

$2.$ Questions after doing cashflow below.

i$.$ How will the advance payment of $$200,000$ in the third month impact the cash flow of Green Plant Inc.?

ii$.$ What is the impact of the $$75,000$ working capital investment by the shareholder on the overall financial picture of the project?

iii. Can you provide a breakdown of the monthly fixed cash inflow of $$175,000$ and its components?

iv$.$ How does the growth rate in accounts payable and salaries and wages payable affect the working capital requirements throughout the project? What strategies could Green Plant Inc. employ to manage and optimize its accounts payable and

v$.$ salaries and wages payable over the $12-$month period?

vi$.$ How will the $$154,000$ loan obtained in the third month impact the overall financing structure and cash flow of Green Plant Inc.?

vii. What will be the total interest paid over the life of the loan, and how does this impact the project's profitability?

viii. How does the acquisition of machinery for $$350,000$ in the second month affect the overall project budget and cash flow?

ix$.$ How sensitive is the project's profitability to changes in key parameters such as cash inflow, loan interest rates, or construction delays.

x$.$ How might unexpected delays in construction impact the project's financial performance and cash flow?