I managed to calculate the compound sales but I don't know how to proceed after that.

. . . . . Ma & Pa Incorporated Expense Estimates (FIN_300) Please noter The data helmwis based on Andres original request of examination of an eight year project. You will use these numbers to answer thrus, on the MA & P* Worksheet 1. Up-front costs Andre Russell worked wide the top management Chit Lucy.Lilian, and Hillary as well as selecie middle ayer to arrive at the up-tront ces Based on his discussions with them, he is anticipating the front costs to be comprised of the following Cost of the land. He anticipates that the land will cost about $40,000 per acre and he neexis about sacres ($200.000 in total Cost of the building 1,000,000 Equipment $750,000 Furniture: $200,000 IT infrastructure: $550.000) Total projected up-frontests $2.200,000 II. Cost of capital Andre researched extensively on cost of capital and found: Total projected cost of capitalt $195,000 TIL. Sales: After working with Elizabeth Brown. Director of Sales and Marketing, and several other managers in her drea, Andreis projecting the following sales for the first year. Furthet these sales are expected to grow at 10% compounded for the duration of the project Electronie toys for children: 5175.000 Halloween toys $320,000 . Christmas toys: $430,000 Total projected sales: 5925,000 IV. Cash expenses Based on the past expenses and projections for future expenses, Andre arrived at the following expenses on an annual basis. For simplicity, Andreassumed that these expenses will grow at 2 annually for the duration of the project Labor/Employment Expenses: 587.500 Maintenance: $77,500 New equipment: $75.000 IT budget $70,000 Total projected cash expense: 5310,000 V. Depreciation: Andre is expecting that the depreciation will computed as follows: Land value depreciation: $70,000 Building value depreciation: $65.000 Equipment depreciation: $60,000 IT infrastructure depreciation $55.000 Total projected depreciation: S250,000 . . Ma & Pa Project Proposal Worksheet Format 2page (minimum), double preport for Andre from Mi incorporated Within your report, be sure to answer all the question below Submit your report to the Maa Pa Incorporated Project Drople. Please use the following naming structure Law Name First Nene Ma Pacie Smith John MAP) Be the eight year model, along with Ande's exitostions thru * At the end of the project, what is Ma & Incorporated's earnings before takes the? At the our tax rate for Mac a incorporated, what is Mo & Pa Incorporated's netice Comwe w projects aller cash flow Operating cash flow Sales-Cats - Depreciation) - Depreciation - change in net working capital c. Compute and interpret the project's NPV. IRR. and profitability index 4. According to your above calculations What is your interpretation ou if the project should be accepted or rejected? The minimum required rate of return is a weighted average of the firm's costs of various sources of capital. Explain. . Ma & Pa Incorporated realize that the project depreciation needs to be 5290,000 and the project needs to last 10 years. The depreciation is now.computed as follows: Land value depreciation 80,000 Building value depreciation: 75.000 Equipment depreciation: 70,000 IT infrastructure depreciation 65,000 Please compute the new NPV, IRR, and profitability index using the new numbers Assume that they reduced the expenses, but depreciation increased to 350.000 and the project duration decreased to 6 years. Land value depreciation: 100.000 Building value depreciation: 90,000 Equipment depreciation: 85.000 IT infrastructure depreciation 75.000 Please compute the new NPV, IRR, and profitability index using the new numbers. h. Regarding firm's decision strategies: Between the original eight year scenario, and the scenarios from and gsix and 10 year scenarios) - identify which is the best scenario Please justify your choice using IRR. NPV and I General Financial Business Questions Please answer these additional general questions in your report to Andre How would the company determine present value? For Ma & Pa Incorporated, or any general company, what is the relationship between capital structure and capital budgeting discount rate? k Discuss the cost of debt financing and cost of equity financing | How does a company compute the cost of capita? . . . . . Ma & Pa Incorporated Expense Estimates (FIN_300) Please noter The data helmwis based on Andres original request of examination of an eight year project. You will use these numbers to answer thrus, on the MA & P* Worksheet 1. Up-front costs Andre Russell worked wide the top management Chit Lucy.Lilian, and Hillary as well as selecie middle ayer to arrive at the up-tront ces Based on his discussions with them, he is anticipating the front costs to be comprised of the following Cost of the land. He anticipates that the land will cost about $40,000 per acre and he neexis about sacres ($200.000 in total Cost of the building 1,000,000 Equipment $750,000 Furniture: $200,000 IT infrastructure: $550.000) Total projected up-frontests $2.200,000 II. Cost of capital Andre researched extensively on cost of capital and found: Total projected cost of capitalt $195,000 TIL. Sales: After working with Elizabeth Brown. Director of Sales and Marketing, and several other managers in her drea, Andreis projecting the following sales for the first year. Furthet these sales are expected to grow at 10% compounded for the duration of the project Electronie toys for children: 5175.000 Halloween toys $320,000 . Christmas toys: $430,000 Total projected sales: 5925,000 IV. Cash expenses Based on the past expenses and projections for future expenses, Andre arrived at the following expenses on an annual basis. For simplicity, Andreassumed that these expenses will grow at 2 annually for the duration of the project Labor/Employment Expenses: 587.500 Maintenance: $77,500 New equipment: $75.000 IT budget $70,000 Total projected cash expense: 5310,000 V. Depreciation: Andre is expecting that the depreciation will computed as follows: Land value depreciation: $70,000 Building value depreciation: $65.000 Equipment depreciation: $60,000 IT infrastructure depreciation $55.000 Total projected depreciation: S250,000 . . Ma & Pa Project Proposal Worksheet Format 2page (minimum), double preport for Andre from Mi incorporated Within your report, be sure to answer all the question below Submit your report to the Maa Pa Incorporated Project Drople. Please use the following naming structure Law Name First Nene Ma Pacie Smith John MAP) Be the eight year model, along with Ande's exitostions thru * At the end of the project, what is Ma & Incorporated's earnings before takes the? At the our tax rate for Mac a incorporated, what is Mo & Pa Incorporated's netice Comwe w projects aller cash flow Operating cash flow Sales-Cats - Depreciation) - Depreciation - change in net working capital c. Compute and interpret the project's NPV. IRR. and profitability index 4. According to your above calculations What is your interpretation ou if the project should be accepted or rejected? The minimum required rate of return is a weighted average of the firm's costs of various sources of capital. Explain. . Ma & Pa Incorporated realize that the project depreciation needs to be 5290,000 and the project needs to last 10 years. The depreciation is now.computed as follows: Land value depreciation 80,000 Building value depreciation: 75.000 Equipment depreciation: 70,000 IT infrastructure depreciation 65,000 Please compute the new NPV, IRR, and profitability index using the new numbers Assume that they reduced the expenses, but depreciation increased to 350.000 and the project duration decreased to 6 years. Land value depreciation: 100.000 Building value depreciation: 90,000 Equipment depreciation: 85.000 IT infrastructure depreciation 75.000 Please compute the new NPV, IRR, and profitability index using the new numbers. h. Regarding firm's decision strategies: Between the original eight year scenario, and the scenarios from and gsix and 10 year scenarios) - identify which is the best scenario Please justify your choice using IRR. NPV and I General Financial Business Questions Please answer these additional general questions in your report to Andre How would the company determine present value? For Ma & Pa Incorporated, or any general company, what is the relationship between capital structure and capital budgeting discount rate? k Discuss the cost of debt financing and cost of equity financing | How does a company compute the cost of capita