i am member and Here i attach files please caluculate NPV for both HI- tech and Broker and give detail knowledge that how you calculate and in method please use depreciation for calculation of net cash flows. and what option is best hi-tech or broker please give me reply. my email address is a..0@gmail.com .My subject ACC 543

Setup Information Brian Lindquist Peso? (1=Yes) 0.08 1.00 10.814 Mexican Pesos = 1.000 US Dollars 0 Income Information Current Production Mid-Grade High-End Hi-Tech 2,585.00 517.00 3,878.00 776.00 Broker 3,878.00 Production can be increased by 50% and the broker also anticipates that same level 776.00 Production can be increased by 50% Direct Materials ($)/Unit Mid-Grade High-End 140.00 250.00 140.00 250.00 Direct Labor ($/HR)/Unit 15.00 40.00 Labor Time (Hrs)/Unit Mid-Grade High-End 20.00 30.00 4.00 4.00 Direct Cost/Unit Mid-Grade High-End 440.00 700.00 300.00 410.00 360.00 The Broker cost for Mid-Grade is based on net FOB destination including shipping/tariffs 410.00 Price/Unit Mid-Grade High-End 509.00 879.00 459.00 789.00 459.00 Prices are reduced by 10% because supply is increased 789.00 Prices are reduced by 10% because supply is increased 50,000 9,000 105,815 3,000 975 50,000 6,000 95,000 27,000 83,964 15,000 3,900 466,667 6,000 19,370 89,534 270,908 224,790 46,118 910,706 697,531 213,175 Plant Overhead/Yr Wages Utilities Benefits Insurance Property Taxes Depreciation Supplies Income Tax Expense There are no material costs for brokered units 250.00 40.00 The labor rate is increased due to the technical skill level of operators There are no labor times for brokered units and production times are 20% of original times 4.00 Production times are now equal to the mid-grade level 95,000 4,502 21,916 15,000 3,900 466,667 6,000 Need to add a 45,000 a year maintenance position for the equipment Utilities are expected to be 3 x's current at full production (150% above current levels) based on units produced Benefits are 10% of all wages (including direct labor) Insurance will increase by 12,000 with the addition of the equipment and building expansion Property taxes are 6.5%, assessment is 1% of original value, and that is on all plant/equipment Buildings are at 30 years and Equipment is at 10 years, straight line Supply expense is miscellaneous and does not vary 27,317 Taxes are 42% of Net Income 678,026 Net Margins 612,985 Overhead 65,041 Net Income before taxes Assets, Liabilities & Equity Information 12/31/2012 Cash Accounts Receivable Inventory Pre-paid Insurance TOTAL CURRENT ASSETS Buildings Less: Accumulated Depreciation Equipment Less: Accumulated Depreciation TOTAL ASSETS Accounts Payable Income Taxes Payable Wages Payable Current Portion of Notes Payable TOTAL CURRENT LIABILITIES $120,872 USD 205,514 121,193 1,250 $448,829 USD 1,500,000 (600,000) 50,000 (50,000) $1,348,829 USD $81,561 USD 18,401 41,885 27,132 $168,979 USD 12/31/2013 $167,991 USD 209,708 DSO = 45 days 124,942 The plant completes all work-in-process before year end inventory 1,500 1/2 a year pre-paid $504,141 USD 1,500,000 (650,000) Current Building has been in use for 13 years 50,000 (50,000) Equipment fully depreciated several years ago $1,354,141 USD $84,083 USD A/P represents 2 months of purchases & 1 month of bills & Prop Tax 19,370 All timing issues wash out (for simplicity) 44,090 Wages are two weeks 29,238 $176,781 USD Mortgage Note Payable TOTAL LIABILITIES 965,867 $1,134,846 USD 936,628 Building was financed Jan 1, 12 years ago at 7.5% and 80% LTV $1,113,409 USD Common Stock Retained Earnings TOTAL EQUITY TOTAL LIABILITIES & EQUITY $10,000 USD 203,984 $213,984 USD $1,348,829 USD $10,000 USD No Par Value 10,000 shares 230,732 $240,732 USD $1,354,141 USD Sales growth has slowed to 1% Inflation is running at 3% Production Data Direct Cost Flame Retardent (per liter) Coating (per liter) Mid-Grade (per unit) High-End (per unit) Alternative Coating (per liter) Market Price of Flame Retardent (per liter) Liters of Flame retardent per year Liters of Coating per year Plant Capacity Flame Retardent Coating Mid-Grade High-End Total 2.00 25.00 140.00 250.00 27.50 10.00 62 310 186 465 5,170 1,034 Wood 80.00 160.00 Materials 40.00 60.00 Foam 20.00 30.00 Chem A 1.50 7.50 Chem B 0.50 2.50 Chem C 15.00