Based on the data provided by Julian and the Manufacturer of the new Kiln, they prepared Table

showing the expected sales over its year economic life and the expected selling price per job.

Depreciation for this project was based on the year MACRS rates as shown in Table Julian estimated

that he would need three cubic foot gas kilns that cost $ each. The cost shipping, handling, and

installation, was estimated at $ for the all three. It was estimated that after years, the equipment

and tools could be sold as scrap metal for about $ a piece.

The kilns would require additional space. Available space in the area could be leased for $

per month. Cost of production for both the Custom Art is of the price and the Special Appeal Molds

is about of the price. Design Time for each Custom piece is about hours. When Julian is working

for contractors, he charges $hour Some of the additional expenses that Julian and Gary identified

include wages for the nonartistic workers. They expect that those costs will start at about $ a year.

Wages will be indexed with the CPI and increase at about annually. Julian also agreed that he would

need some more operational expense: Annual increase would include $ in Advertising, $

additional insurance premium, $ more for equipment repair and about $ more for general supplies.

To get the project underway, some of the Special Appeal molds inventory of $ would be required

and would be paid for by an increase its accounts payable by $ Once sales begin, Julian and Gary

estimate that each year there after, the net working capital of the firm would amount to of the next

year sales for Special Appeal Art. The venture capitalist is looking for a return of about The

companys tax rate is

Table

Projected Sales for Custom Art

Year Unit Sales Unit Price

$

TABLE a Projected Sales for Special Appeal

Year Unit Sales Unit Price

$

Table

Modified ACRS Depreciation Allowances

Year Year Year Year

Can you please help me find the CAPM and DGM