How many years will it take an investment to triple if the interest rate of 8% compounded annually.5. You are the CEO of Blue and Gold Furniture Company (a small household goods manufacturing firm) and have just been briefed on some promising new production machinery which will enable 3D printing of numerous types of personalized furniture. Projected cash flows detailed below. The 3D printer has a 5 year life cycle, with no scrap value. Discuss your assessment of this projects viability and profitability. Calculate net cash flow for each year, payback period, total return on investment, internal rate of return, and net present worth. State any assumptions (i.e. Minimal attractive rate of return). Explain your reasoning behind those assumptions. Year Revenue Capital Expenditures Initial Investment $10,000,000 2016 $4,250,000 $250,000 2017 $5,100,000 $100,000 2018 $10,100,000 $100,000 2019 $11,500,000 $500,000 2020 $11,000,000

10. How many years will it take an investment to triple if the interest rate of 8% compounded annually.5. You are the CEO of Blue and Gold Furmiture Company (a small household goods manufacturing firm) and have just been briefed on some promising new production machinery which will enable 3D printing of numerous types of personalized furniture. Projected cash flows detailed below. The 3D printer has a 5 year life cycle, with no scrap value Discuss your assessment of this project's viability and profitability. Calculate net cash flow for each year, payback period, total return on investment, internal rate of return, and net present worth. State any assumptions (i.e. Minimal attractive rate of return). Explain your reasoning behind those assumptions. Year Revenue Capital Expenditures $10,000,000 Initial Investment 2016 2017 $5,100,000 $100,000 2018 2019 2020 $4,250,000 | $250,000 $10,100,000 $100,000 $11,500,000 $500,000 $11,000,000 EXTRA CREDIT (up to 10 aditional points): There is much debate over whether or not fast food restaurants could bear the impacts of an increase from a $7.25/hour to a $15/hour minimum wage. In the context of this class, evaluate the statement: "If McDonalds were to double the salaries and benefits of all of its employees from the CEO down to the minimum wage cashiers, it would still only cost an extra 68 cents for a Big Mac." What information would you need to perform this analysis? What assumptions would you have to make? Without having the data readily available, do you believe it is a true statement? How about if the minimum wage tripled? Would that change your answer? (Keep your answer less than two pages.) how transcribed image text