(8 peents) a Cemylete the fallowiag table: its capital buslect? property of properties abould be purthased? 11. Amaxing Coametics currenify manufactures a trand of mal cup called cilowing. Managemant is coeaideriag iserofucing an impeoved makeys brand called Irresiritie. Management evpectis that sales of freesinile will be $10 million per year. While many of theie sales will be to new cusisiners, makegennere cstimales that 20% will come frum cussomers who switch from Clowing to Irrevisible. (2 points) a Assame customen wili spesd the same amsunt on cither makeup branal. What level of itwermental sales ts asocialed with introdsing the Ieresiat Be brind? (2 points) be. Suppese that 50 Fe of the customern who will nwitch from Glowing to Irrenistiklo will 3vitch bo another company't brand if Amacing Cosmetics dses not introduce a new malveup brack. What level of incremental sales is asociated with introducing the nev ntalcup beand in this caue? (2 points) 12. Deluxe Delivery is a delivery service that reportcul a set income of 520 milioe foe the most recent fiscal year. The firm had deperciation expenses of 59 million, capital ewpendinares of 512 milisoer, and no inecrest espeases. Wotking capital iscreased by 51 million. Calculate the free cash tlow for Deluxe Delizcry for the marit mectit fisesl year. payhack period that the hospital wes for scloctins jrujocts is the it most lec les than five years. Paped on this criterion fot selecring inventment proyects, the boest wiew the groparal boe the berw ward to be attrective. What is yoer rocorninetniation to the beact? to buy the propertict today and sell thers five years froes tadey. Nill properties are viewed a having the same risk. All gooperties are evaluated based oo a 13ho con of eapital. The following table nummsrizes the initial cost and the expected sale perice for each property. (8 doints) a Complete the followine table: (2 points) b. Which properties should be parchased if Rescet Propertien linc. has no tertriction on its capital budget? (2 points) e. Suppose that Resort Properties lne. has a capital badget of 511 millioe. Which property or properties should be parchased? 11. Amaxing Cosmetics currently manufactures a brand of makepp called Glowing. Management is considering introducing an imptoved makeup beand called liperistible. Managenent expects that sales of frresidrible will be $10 milison per year, Blize mary of these sales will be to new to Irresizstible, (2 points) a. Assume castomers will spend the same amsent on either makeup brand. What level of incremental sales is associated with introducing the lrresiscible brand? (2 points) b. Suppose that 50% of the customers who will switch froen Glowing to Inresistible will switch to another company's brand if Amaring Cosmetics does sot introduce a new maketep brand. What level of incremental sales is associated with introdscing the ncw makeup brand in this ease? (2 points) 12. Deluxe Delivery is a delivery service that reportad a net income of 520 million for the most recert fiseal year. The firm had depreciation expenses of $9 million, cipital expenditures of $12 million, and no interest expenses. Working capital increasod by $1 million. Calculate the froe cash flow for Deluse Delivery for the most recent fiscal year. the steps in your calculation. Your name: (If you work in a group, please list all the members' names here) 1. (10 points each) Determine the future value based on annual compounding for each of the following: 2 . (5 points) You are offered an investment that costs $100,000 and pays you at the end of fou (6 points) 6 . Determine whether the IRR for a project with the following cash flows is about 9% or 13% if its cost is $13,058,741. (8 peents) a Cemylete the fallowiag table: its capital buslect? property of properties abould be purthased? 11. Amaxing Coametics currenify manufactures a trand of mal cup called cilowing. Managemant is coeaideriag iserofucing an impeoved makeys brand called Irresiritie. Management evpectis that sales of freesinile will be $10 million per year. While many of theie sales will be to new cusisiners, makegennere cstimales that 20% will come frum cussomers who switch from Clowing to Irrevisible. (2 points) a Assame customen wili spesd the same amsunt on cither makeup branal. What level of itwermental sales ts asocialed with introdsing the Ieresiat Be brind? (2 points) be. Suppese that 50 Fe of the customern who will nwitch from Glowing to Irrenistiklo will 3vitch bo another company't brand if Amacing Cosmetics dses not introduce a new malveup brack. What level of incremental sales is asociated with introducing the nev ntalcup beand in this caue? (2 points) 12. Deluxe Delivery is a delivery service that reportcul a set income of 520 milioe foe the most recent fiscal year. The firm had deperciation expenses of 59 million, capital ewpendinares of 512 milisoer, and no inecrest espeases. Wotking capital iscreased by 51 million. Calculate the free cash tlow for Deluxe Delizcry for the marit mectit fisesl year. payhack period that the hospital wes for scloctins jrujocts is the it most lec les than five years. Paped on this criterion fot selecring inventment proyects, the boest wiew the groparal boe the berw ward to be attrective. What is yoer rocorninetniation to the beact? to buy the propertict today and sell thers five years froes tadey. Nill properties are viewed a having the same risk. All gooperties are evaluated based oo a 13ho con of eapital. The following table nummsrizes the initial cost and the expected sale perice for each property. (8 doints) a Complete the followine table: (2 points) b. Which properties should be parchased if Rescet Propertien linc. has no tertriction on its capital budget? (2 points) e. Suppose that Resort Properties lne. has a capital badget of 511 millioe. Which property or properties should be parchased? 11. Amaxing Cosmetics currently manufactures a brand of makepp called Glowing. Management is considering introducing an imptoved makeup beand called liperistible. Managenent expects that sales of frresidrible will be $10 milison per year, Blize mary of these sales will be to new to Irresizstible, (2 points) a. Assume castomers will spend the same amsent on either makeup brand. What level of incremental sales is associated with introducing the lrresiscible brand? (2 points) b. Suppose that 50% of the customers who will switch froen Glowing to Inresistible will switch to another company's brand if Amaring Cosmetics does sot introduce a new maketep brand. What level of incremental sales is associated with introdscing the ncw makeup brand in this ease? (2 points) 12. Deluxe Delivery is a delivery service that reportad a net income of 520 million for the most recert fiseal year. The firm had depreciation expenses of $9 million, cipital expenditures of $12 million, and no interest expenses. Working capital increasod by $1 million. Calculate the froe cash flow for Deluse Delivery for the most recent fiscal year. the steps in your calculation. Your name: (If you work in a group, please list all the members' names here) 1. (10 points each) Determine the future value based on annual compounding for each of the following: 2 . (5 points) You are offered an investment that costs $100,000 and pays you at the end of fou (6 points) 6 . Determine whether the IRR for a project with the following cash flows is about 9% or 13% if its cost is $13,058,741