I have attached my business finance homework and would like someone to work through the problems for me and give the formulas as well. Thank you.

1.) (Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,100,000 and cash expenses (including both fixed and variable costs) of $500,000, while increasing depreciation by $240,000 per year. In addition, the firm's tax is 33 percent. Calculate the operating cash flows for the new project. 2.) (Calculating free cash flows) You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 8,000 of these per year for 10 years (after which time this project is expected to shut down with solar-powered skateboards taking over). The gas skateboards would sell for $130 each with variable costs of $45 for each one produced, while annual fixed costs associated with production would be $200,000. In addition, there would be a $1,500,000 initial expenditure associated with the purchase of new production equipment. It is assumed that this initial expenditure will be depreciated using the simplified straight-line method down to zero over 10 years. This project will also require a one-time initial investment of $40,000 in net working capital associated with inventory and that working capital investment will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate is 32 percent. What is the initial outlay associated with this project? What are the annual free cash flows associated with this project for years 1 through 9? What is the terminal cash flow in year 10 (that is, what is the free cash flow in year 10 plus any additional cash flows associated with termination of the project)? What is the project NPV given a required rate of return of 9 percent? 3.) (Inflation and project cash flows) Carlyle Chemicals is evaluating a new chemical compound used in the manufacture of a wide range of consumer projects. The firm is concerned that inflation in the cost of raw materials will have an adverse effect on the project's cash flows. Specifically, the form expects the cost per unit (which is currently $0.85) will rise at a rate of 15 percent annually over the next three years. The per-unit selling price is currently $0.96 and this price is expected to rise at a meager 1 percent annual rate over the next three years. If Carlyle expects to sell 5.5, 6.8, and 10 million units for the next three years, respectively, what is your estimate of the gross profits to the firm? Based on these estimates, what recommendation would you offer to the firm's management with regard to this product? (Note: Be sure the round each unit price and unite cost per year to the nearest cent.) 4.) (Calculating the expected NP of a project) Management at the Doctors Bone and Joint Clinic is considering whether to purchase a newly developed MRI machine which they feel will provide the basis for better diagnosis of foot and knee problems. The New machine is quite expensive and will be used for a number of years. The clinic's CFO asked an analyst to work up estimates of the NPV of the investment under three different assumptions about the level of demand for its use (high, medium, and low). The CFO assigned a 50 percent probability to the medium-demand state, a 30 percent probability to the high state, and the remaining 20 percent to the low state. After making forecast of the demand for the machine based on the CFO's judgment and past utilization rates for MRI scans, the following NPV estimates were made: What is the expected NPV for the MRI Machine based on the above estimates? How Would you interpret the meaning of the expected NPV? Does this look like a good investment to you? Assuming that the probability of the medium-demand state remains 50 percent, calculate the maximum probability you can assign to the low-demand state and still have an expected NPV of 0 or higher. (Hint: The sum of the probabilities assigned to all three must be 100 percent.) Demand State Probability of State NPV Estimate Low 20% $ (300,000) Medium 50% $200,000 High 30% $400,000 5.) (Scenario analysis) Family Security is considering introducing tine GPS trackers that can be inserted in the sole of a child's shoe, which would then allow for the tracking of that child if he or she was ever lost or abducted. The estimates, that might be off by 10 percent (either above or below), associated with this new product are show here: Since this is a new product line, you are not confident in your estimates and would like to know how well you will fare if your estimates on the items listed above are 10 percent higher or 10 percent lower than expected. Assume that this new product line will require an initial outlay of $1.00 million, with no working capital investment, and will return or cost of capital is 10.0 percent, and the firm's marginal tax rate is 34 percent. Calculate the project's NPV under the \"best-case scenario\" (that is, use the high estimates-unit price 10 percent above expected, variable cost 10 percent less than expected, fixed cost 10 percent less than expected, and expected sales 10 percent more than expected). Calculate the project's NPV under the worst-case scenario.) Unit Price: $125 Variable Costs: $75 Fixed Costs: $250,000 per year Expected sales: 10,000 per year 6.) (Real options and capital budgeting) You are considering introducing a new Tex-Mex-Thai fusion restaurant. The initial outlay on this new restaurant is $6.3 million and the present value of the free cash flows (excluding the initial outlay) is $4.8 million, such that the project has a negative expected NPV of $1.5 million. Upon closer examination, you find that there is a 50 percent change that this new restaurant will be well received and will produce annual cash flows of $803,000 per year forever (a perpetuity), while there is a 50 percent chance of it producing a cash flow of only $199,000 per year forever (a perpetuity) if it isn't received well. The required rate of return you use to discount the project cash flows is 10.4 percent. However, if the new restaurant is successful, you will be able to build 15 more of them and they will have costs and cash flows similar to the successful restaurant's costs and cash flows. In spite of the fact that the new restaurant has a negative NPV, should you build it anyway? Why or why now? What is the expected NPV for this project if only one restaurant is built but isn't well received? What is the expected NPV for this project assuming 15 more are built if the first restaurant is well received? (Ignore the fact that there would be a time delay in building additional new restaurants.) 7.) (Evaluating trade credit discounts) If a firm buys on trade credit terms of 3/10, net 50 and decides to forgo the trade credit discount and pay on the net day, what is the annualized cost of forgoing the discount (assume a 360 day year)? The annualized cost of the trade credit terms of 3/10, net 50 is __% (round to two decimal places.)