(14 guiets) a Complete the fallowing table: it oxital bodeer? lo Imexistike. wasil to be entactive. What is your reccennendetion lo the looerl? rammarinos the laitial cost and the evected wale price fier exit property. (t points) a. Coenplese the follawing tathe (2 poian) b. Which pooperties stoeld be purchused if Resort Froperties lise. has no restriction on its capital badgct? (2 points) c. Suppose that Reson Properties Inc, has a capital bodget of $11 milfion. Which property or properties should he prethesed? 11. Amaxing Cosmetics carremly manufactures a bead of a micep allet Glowing. Management that sales of Irresterikle will be $10 million per yare, While magy of these sules will be to new cutomens, managemest estimaces that 20 in, will coene from carsomers who switch from Glowing to lreristikle, (2 points) a Axsume cuitomen will rocod the une amoar ce cither makeup band. What level of incremental salet is atsociated with introdocing the lnesistible trand? (2 points) b. Suppose that 50% of the cescenen who will rwich tram Glowing to laraistible wiil wwitch to another cotmpany's brand if Amaring Coemetics does not introdsce a new maketp brand. What level of incremental sales is associantod with introdacing the ecw makstop trand in this case? (2 pointa) 12. Delaxe Delivery is a delivery service thit reponad a net inceme of $20 million for the most rocent tiscal year. The firm bas depeciatice eqenses of 59mili ion, capital eqpendituret of 512 millise, and mo intereit expenses. Woriang cayital increased by 51 million. Calculate the ince cash flow for Deliowe Delivery for the mont recent focel year, (4 peinta) a. Conngirtis the folmoviry tublr is capital budger? property or popentici shoult be perchassd? to Inteitible. (2 poists) a Autume cestureen will soesd the aame anaut ve either mukeup beand. What level of inceancetal ales is associated with introdwing the litesisible heand? Q poinsy 12. Deltew Delivery is a delivery servioe the ropentad a act iasome of 520 million for free cauh flow for Delarie Delivery for the most recert focal year. 1. (12 paints) a Complete the followite tuhle for the Eve profocte: acerpiedt (2 points) e. Suppose that the five perject ase indepenslat. Foe theoe projects that are asceptalle, how would they be natived? (5 pointe) 4. Suppose the followits preject which cents 51.5 arision has the following extimuted 1 The board has been told by the consulting firn that since the IRR is approximately 975, the expatsion should be undertaken as long as the univernity's cost of cagital is less than 9%. What would be your recoenmendation be the board? (10 points) 9. You are the advisor so the board of trustces of a hospital. The boand is considering adding a ward to the hospital. It is estimated that the puyback pericd is about four years. The fiat back period that the horgital uses for sclecting projects in that it muse be less than Five years. Based on this critcrice for selecting inveriment peog setw, the board vicws the proposal for the new ward to be actractive. What is your roconmendatioe to the board? 10. Resort Propertics Ine, is evaluating the potential acquitition of uix resorts. Maragement plans to buy the propertits todiny and sell them five years froe todry. All properties are viewed as hiving the same risk. All properties are evaluated based on a 13% cost of capital. The following table summarizes the initial cost ind the expected sale price far each propenty. (8 points) a. Complete the following table: 10. Resort Properties Inc. is evaluating the potential acquisition of six resorts. Management plans to buy the properties today and sell them five years from today. All properties are viewed as having the same risk. All properties are evaluated based on a 13% cost of capital. The following table summarizes the initial cost and the expected sale price for each property. (8 points) a. Complete the following table: (2 points) b. Which properties should be purchased if Resort Properties Inc. has no restriction on its capital budget? (2 points) c. Suppose that Resort Properties Inc. has a capital budget of $11 million. Which property or properties should be purchased? (14 guiets) a Complete the fallowing table: it oxital bodeer? lo Imexistike. wasil to be entactive. What is your reccennendetion lo the looerl? rammarinos the laitial cost and the evected wale price fier exit property. (t points) a. Coenplese the follawing tathe (2 poian) b. Which pooperties stoeld be purchused if Resort Froperties lise. has no restriction on its capital badgct? (2 points) c. Suppose that Reson Properties Inc, has a capital bodget of $11 milfion. Which property or properties should he prethesed? 11. Amaxing Cosmetics carremly manufactures a bead of a micep allet Glowing. Management that sales of Irresterikle will be $10 million per yare, While magy of these sules will be to new cutomens, managemest estimaces that 20 in, will coene from carsomers who switch from Glowing to lreristikle, (2 points) a Axsume cuitomen will rocod the une amoar ce cither makeup band. What level of incremental salet is atsociated with introdocing the lnesistible trand? (2 points) b. Suppose that 50% of the cescenen who will rwich tram Glowing to laraistible wiil wwitch to another cotmpany's brand if Amaring Coemetics does not introdsce a new maketp brand. What level of incremental sales is associantod with introdacing the ecw makstop trand in this case? (2 pointa) 12. Delaxe Delivery is a delivery service thit reponad a net inceme of $20 million for the most rocent tiscal year. The firm bas depeciatice eqenses of 59mili ion, capital eqpendituret of 512 millise, and mo intereit expenses. Woriang cayital increased by 51 million. Calculate the ince cash flow for Deliowe Delivery for the mont recent focel year, (4 peinta) a. Conngirtis the folmoviry tublr is capital budger? property or popentici shoult be perchassd? to Inteitible. (2 poists) a Autume cestureen will soesd the aame anaut ve either mukeup beand. What level of inceancetal ales is associated with introdwing the litesisible heand? Q poinsy 12. Deltew Delivery is a delivery servioe the ropentad a act iasome of 520 million for free cauh flow for Delarie Delivery for the most recert focal year. 1. (12 paints) a Complete the followite tuhle for the Eve profocte: acerpiedt (2 points) e. Suppose that the five perject ase indepenslat. Foe theoe projects that are asceptalle, how would they be natived? (5 pointe) 4. Suppose the followits preject which cents 51.5 arision has the following extimuted 1 The board has been told by the consulting firn that since the IRR is approximately 975, the expatsion should be undertaken as long as the univernity's cost of cagital is less than 9%. What would be your recoenmendation be the board? (10 points) 9. You are the advisor so the board of trustces of a hospital. The boand is considering adding a ward to the hospital. It is estimated that the puyback pericd is about four years. The fiat back period that the horgital uses for sclecting projects in that it muse be less than Five years. Based on this critcrice for selecting inveriment peog setw, the board vicws the proposal for the new ward to be actractive. What is your roconmendatioe to the board? 10. Resort Propertics Ine, is evaluating the potential acquitition of uix resorts. Maragement plans to buy the propertits todiny and sell them five years froe todry. All properties are viewed as hiving the same risk. All properties are evaluated based on a 13% cost of capital. The following table summarizes the initial cost ind the expected sale price far each propenty. (8 points) a. Complete the following table: 10. Resort Properties Inc. is evaluating the potential acquisition of six resorts. Management plans to buy the properties today and sell them five years from today. All properties are viewed as having the same risk. All properties are evaluated based on a 13% cost of capital. The following table summarizes the initial cost and the expected sale price for each property. (8 points) a. Complete the following table: (2 points) b. Which properties should be purchased if Resort Properties Inc. has no restriction on its capital budget? (2 points) c. Suppose that Resort Properties Inc. has a capital budget of $11 million. Which property or properties should be purchased