Help with any of these would be appreciated

expanding into the fruit juicD CASH FLOW ESTIMATION Allied Food Products is considering recently hired as assistant to the director of capital budgeting, and you product. Assume that you were Allied owns the building, which is fully in an unused building adjacent to Allied's Fort Myers plant; is $280,000, including shipping and installation costs, The purchase price of the required equipment payable would increase by $5,000. All In addition, inventories equipment is eligible for 100% bonus The project is expected to All of these costs would be inould rise by $25,000, while accounts inflows are assumed to begin 1 perate for 4 years, at which incurred at t=0. out to t=4. At the end of the 1 year after the project is underime it will be terminated. The cash value of $25,000. fe (t=4), the equipment is expected to have a salvage unit. Cash operating costs for the projet anits per year, and the expected sales price is $2.00 per 25%, and its WACC is 10%. Tentatively, the are expected to total 60% of dollar sales. Allied's tax rate is other assets. You have been asked to evaluate the project and to make a recommendation as to whether it should be accepted or rejected. To guide you in your analysis, your boss gave you the following set of tasks/questions: a. Allied has a standard form that is used in the capital budgeting process. (See Table IC 12.1.) Part of the table has been completed, but you must replace the blanks with the missing numbers. Complete the table using the following steps: 1. Fill in the blanks under Year 0 for the initial investment outlays: CAPEX (1T) and NOWC. 2. Complete the table for unit sales, sales price, total revenues, and operating costs. 3. Complete the table down to after-tax operating income and then down to the project's operating cash flows, EBIT (1T) - DEP. 4. Fill in the blanks under Year 4 for the terminal cash flows and complete the project free cash flow line. Discuss the recovery of net operating working capital. What would have happened if the machinery had been sold for less than its book value? b. 1. Allied uses debt in its capital structure, so some of the money used to finance the project will be debt. Given this fact, should the projected cash flows be revised to show projected interest charges? Explain. 2. Suppose you learned that Allied had spent $50,000 to renovate the building last year, expensing these costs. Should this cost be reflected in the analysis? Explain. 3. Suppose you learned that Allied could lease its building to another party and earn $25,000 per year. Should that fact be reflected in the analysis? If so, how? 4. Assume that the lemon juice project would take profitable sales away from Allicd's fresh orange juice business. Should that fact be reflected in your analysis? If so, how? c. Disregard all the assumptions made in part b and assume there is no alternative use for the building over the next 4 years. Now calculate the project's NPV, IRR, MIRR, and payback. Do these indicators suggest that the project should be accepted? Explain. d. If this project had been a replacement rather than an expansion project, how would the analysis have changed? Think about the changes that would have to occur in the cash flow table. e. 1. What three levels, or types, of project risk are normally considered? 2. Which type is most relevant? 3. Which type is easiest to measure? 4. Are the three types of risk generally highly correlated? f. 1. What is sensitivity analysis? 2. How would you perform a sensitivity analysis on the unit sales, salvage value, and WACC for the project? Assume that each of these variables deviates from its base-case, or expected, value and payback for 10%,20%, and 30%. Explain how you would calculate the NPV, IRR, MIRR, 3. What is the primary wreak but don't do the analysis unless your instructor asks you to. Work out quantitative answers to the remaining questions only if your instructor asks you to. Also note that it will take a long time to do the calculations unless you are using an Excel model. g. Assume that inflation is expected to average 5% over the next 4 years and that this expectation is this same 5\%. Does it Moreover, inflation is expected to increase revenues and variable costs by point? If not, what should be done and has been dealt with properly in the initial analysis to this h. The expected cash flows, considering inflew would the required adjustment affect the decision? Allied's WACC is 10%. Assume that inflation (in thousands of dollars), are given in Table IC 12.2. affect the cash flows except unit sales. If produrident about the estimates of all the variables that units a year, while a strong consumer response woceptance is poor, sales would be only 75,000 Considering 5% Inflation (in thousands) TABLE IC 12.2 Year case, cash costs would still amount to 60% of revenues. You believe that there is a 25% chance of poor acceptance, a 25% chance of excellent acceptance, and a 50% chance of average acceptance (the base case). Provide numbers only if you are using a computer model. 1. What is the worst-case NPV? The best-case NPV? 2. Use the worst-case, most likely case (or base-case), and best-case NPVs with their probabilities of occurrence, to find the project's expected NPV, standard deviation, and coefficient of variation