I need help with the problems in the attachment provided. I need these completed by Tomorrow, February 19, 2017 at 1:00pm (EST).

1.)Iridium Corp. has spent $ 3.5 billion over the past decade developing a satellite-based telecommunication system. It is currently trying to decide whether to spend an additional $ 347million on the project. The firm expects that this outlay will finish the project and will generate cash flow of $ 15.8million per year over the next 5 years. A competitor has offered $ 457million for the satellites already in orbit. Classify the firm's outlays as sunk costs or opportunity costs, and specify the relevant cash flows. 2.)Change in net working capital calculation-Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $ 924,000 and total current liabilities of $ 636,000 . As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted. Account Change Accruals + $ 38,000 Marketable securities 0 Inventories -14,000 Accounts payable + 91,000 Notes payable 0 Accounts receivable + 150,000 Cash +10,000 a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. c. Would the change in net working capital enter into any of the other cash flow components that make up the relevant cash flows? Explain. 3.) Book value and taxes on sale of assets-Troy Industries purchased a new machine 4 year(s) ago for $76,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule: Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the halfyear convention Assume 40 % ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $ 91,200; $ 53,200; $ 12,920; and $ 9,000. 4.) Depreciation-A firm is evaluating the acquisition of an asset that costs $ 63,400 and requires $ 4,130 in installation costs. If the firm depreciates the asset under MACRS, using a 5-year recovery period. (see table): Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% Determine the depreciation charge for each year. 5.) Terminal cash Flow-Replacement decision-----Russell Industries is considering replacing a fully depreciated machine that has a remaining useful life of 10 years with a newer, more sophisticated machine. The new machine will cost $190,000 and will require $29,700 in installation costs. It will be depreciated under MACRS using a 5-year recovery period. (see the table for the applicable depreciation percentages). Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7years 10years 1 33% 20% 14% 10% 2 45% 32% 25% 14% 3 15% 19% 18% 18% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% A $ 24,000 increase in net working capital will be required to support the new machine. The firm's managers plan to evaluate the potential replacement over a 4-year period. They estimate that the old machine could be sold at the end of 4 years to net $14,500 before taxes; the new machine at the end of 4 years will be worth $78,000 before taxes. Calculate the terminal cash flow at the end of year 4 that is relevant to the proposed purchase of the new machine. The firm is subject to a 40 % tax rate. The terminal cash flow for the replacement decision is shown below:(Round to the nearest dollar.) 5.) continued.... Proceeds from sale of new machine $__________________ Tax on sale of new machine____________________ Total after-tax proceeds-new asset ___________________ Proceeds from sale of old machine_____________________ Tax on sale of old machine_____________________ Total after-tax proceeds-old asset____________________ Change in net working capital_________________________ Terminal cash flow____________________________ 6.) Breakeven point-Changing costs/revenues ---- JWG Company publishes Creative Crosswords. Last year the book of puzzles sold for $ 10.78 with variable operating cost per book of $ 7.83 and fixed operating costs of $ 41,000. . a. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if all figures remain the same as for last year? b. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if fixed operating costs increase to $ 44,800 and all other figures remain the same? c. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if the selling price increases to $ 11.41 and all costs remain the same as for last year? d. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, if the variable operating cost per book increases to $ 8.46 and all other figures remain the same? e. What conclusions about the operating breakeven point can be drawn from your answers? 7.) Integrative----Multiple leverage measures-----Play-More Toys produces inflatable beach balls, selling 420,000 balls per year. Each ball produced has a variable operating cost of $ 0.88 and sells for $ 1.11. Fixed operating costs are $ 35,000. The firm has annual interest charges of $5,500, preferred dividends of $ 1,500, and a 40 %tax rate. a. Calculate the operating breakeven point in units. b. Use the degree of operating leverage (DOL) formula to calculate DOL. c. Use the degree of financial leverage (DFL) formula to calculate DFL. d. Use the degree of total leverage (DTL) formula to calculate DTL. Compare this to the product of DOL and DFL calculated in parts (b) and (c). 8.)Integrative---Leverage and risk------Firm R has sales of 98,000units at $ 2.04 per unit, variable operating costs of $ 1.74per unit, and fixed operating costs of $ 6,090. Interest is $ 10,090 per year. Firm W has sales of 98,000 units at $ 2.54per unit, variable operating costs of $ 0.97per unit, and fixed operating costs of $ 62,500. Interest is $17,300 per year. Assume that both firms are in the 40 % tax bracket. a. Compute the degree of operating, financial, and total leverage for firm R. b. Compute the degree of operating, financial, and total leverage for firm W. c. Compare the relative risks of the two firms. d. Discuss the principles of leverage that your answers illustrate. 9.) Cobalt Industries had sales of 157,700 units at a price of $ 9.94 per unit. It faced fixed operating costs of $242,000 and variable operating costs of $ 5.05 per unit. The company is subject to a tax rate of 38 % and has a weighted average cost of capital of 8.4 %. Calculate Cobalt's net operating profits after taxes (NOPAT), and use it to estimate the value of the firm. (Assume the firm's earnings are not growing.) 10.) EBIT-----EPS and capital structure-----Data-Check is considering two capital structures. The key information is shown in the following table. Assume a 40 % tax rate. Source of capital Long-term debt Common stock Structure A $ 90, 000 at 15.1% Coupon rate /shares 4,700 Structure B $180,000 at 16.1% 2,350 a. Calculate two EBIT-EPS coordinates for each of the structures by selecting any two EBIT values and finding their associated EPS values. b. Plot the two capital structures on a set of EBIT-EPS axes. c. Indicate over what EBIT range, if any, each structure is preferred. d. Discuss the leverage and risk aspects of each structure. e. If the firm is fairly certain that its EBIT will exceed $ 80, 000, which structure would you recommend? Why