Assessment is due no later than Tuesday, September 13, 2016. But would like to submit as soon as possible. The questions are listed in the attachment. Thanks.

1. Galaxy Satellite Co. is attempting to select the best group of independent projects competing for the firm's fixed capital budget of $10,000,000. Any unused portion of this budget will earn less than its 20 percent cost of capital. A summary of key data about the proposed projects follows. (a) Use the NPV approach to select the best group of projects. (b) Use the IRR approach to select the best group of projects, if the required rate of return is 23.5%. 2. Hayley's Theatrical Supply is in the process of negotiating a line of credit with two local banks. The prime rate is currently 8 percent. The terms follow: (a) (b) Calculate the effective interest rate of both banks. Recommend which bank's line of credit Hayley's Theatrical Supply should accept. 3. Jia's Oven Manufacturing is evaluating the acquisition of Cuisinaire Kitchen Appliance Co. Cuisinaire has a loss carry forward of $1.5 million which resulted from earlier operations. Jia's Oven can purchase Cuisinaire for $1.8 million and liquidate the assets for $1.3 million. Jia's Oven expects earnings before taxes in the five years following the acquisition to be as follows: (These earnings are assumed to fall within the annual limit legally allowed for application of the tax loss carry forward resulting from the proposed acquisition.) Jia's Oven is in the 40 percent tax bracket and has a cost of capital of 17 percent. (c) What is the tax advantage of the acquisition each year for Jia's Oven? (d) What is the maximum cash price Jia's Oven would be willing to pay for Cuisinaire? (e) Do you recommend the acquisition? Why or why not