1. You are preparing a business plan for a new apartment development .You purchased the land 2 years ago for $400,000 , but the real estate market has been good and it is currently appraised at $610,000 . Taxes paid last year were $10,000 and you just paid your architect $15,000 for the building plans .Bnilding permits will cost $5,000 and it will cost $239,000 to construct the apartment What is the correct initial cash flow for your analysis? 2. Colcord Industries is replacing an old mixing machine . The old machine has been fully depreciated , but Colcord finds someone willing to buy it for $2,424 .The new machine costs $35,000 and will be straight line depreciated over its 7'year life. The new machine will also immediately increase inventory by $300. Coloord's tax rate is 34%. What is the total initial (t=0} cash flow for the replacement decision? 3. Water World Inc. (WWI) is introducing a new swimming pool called the \"Ready for Summer The new pool will sell for $18,000 and WM estimates that it will sell 24 Ready for Summer pools in Year 1. Of the 24 Year 1 Ready for Summer pools sold, 5 will be sales to customers that were originally planning to buy WW'I's mid level pool, The Hampton , which has a selling price of $27,000 . What amount should WWI use as the Year 1 incremental Sales (Revenue) figure when evaluating this project ? 4. Beltake Inc. has a new 3year project with the following NWC requirements .The project will end after 3 years . Year 1 Year 2 Year 3 Accounts Receivable $ 58 $ 62 $ 0 Inventory $ 54 $ 4 1 $ 0 Accounts Payable $ :17 $ 50 $ 0 What is the Year 3 NWC Cash Flow ? 5. AH Global is buying a new metal stamping machine for $2.7 million .It has a 10 year life and will be depreciated to zero .AH plans to use the machine for 4 years . It estimates it can sell the machine for $900,000 at that time. The tax rate is 34%. What is the aftertax cash flow from the sale of the stamping machine