Looking at the FCF results, should asking the Sharks for money be considered? b. If so, why? If not, why not?

1 (14 pts) Based upon the figures below and the financial forecast for the years 20232027, compute 1 a through 1d below, placing your final results in the yellow highlighted area. HINT: All formulas needed to solve 1a1d come from your Week 4 Lesson and Week 4 Chapter readings. GIVEN: Quantity of windows sold Selling price per window Variable Costs per window Total Fixed Costs Total Variable Costs \begin{tabular}{|r|r|r|r|r|} \hline \multicolumn{1}{|c|}{2023} & \multicolumn{1}{c|}{2024} & \multicolumn{1}{c|}{2025} & \multicolumn{1}{c|}{2026} & \multicolumn{1}{c|}{2027} \\ \hline 4,000 & 5,000 & 6,000 & 7,000 & 8,000 \\ \hline$1,000 & $1,000 & $1,000 & $1,000 & $1,000 \\ \hline$500 & $600 & $583 & $571 & $625 \\ \hline$500,000 & $500,000 & $500,000 & $500,000 & $500,000 \\ \hline$2,000,000 & $3,000,000 & $3,500,000 & $4,000,000 & $5,000,000 \\ \hline \end{tabular} SOLVE FOR: \begin{tabular}{l|l|l} a Contribution Margin Ratio & 3 pts \\ \hline b \end{tabular} b Breakeven in sales dollars 3 pts c DOL d DFL 4 pts 4 pts \begin{tabular}{|r|r|r|r|r|r|} \hline \multicolumn{1}{|c|}{2023} & \multicolumn{1}{|c|}{2024} & \multicolumn{1}{c|}{2025} & \multicolumn{1}{c|}{2026} & \multicolumn{1}{c|}{2027} \\ \hline 0.500 & 0.400 & 0.417 & 0.429 & 0.375 \\ \hline$1,000,000 & $1,250,000 & $1,200,000 & $1,166,667 & $1,333,333 \\ \hline 1.333 & 1.250 & 1.200 & 1.167 & 1.143 \\ \hline 1.080 & 1.049 & 1.032 & 1.021 & 1.013 \\ \hline \end{tabular} CM/ Sales Fixed Cost/CM per unit CM/EBIT EBIT/EBIT-1 GIVEN: NOTE 1: The shark's investment of $1,000,000 gave him 25% ownership of your company and its profits. NOTE 2: The shark requires a 9% Rate of Return on his investment. NOTE 3: \begin{tabular}{|c|c|c|c|c|c|} \hline & 2023 & 2024 & 2025 & 2026 & 2027 \\ \hline($1,000,000) & $372,212 & $843,095 & $1,066,542 & $1,330,902 & $1,554,349 \\ \hline \end{tabular} Cash Flows from Operations (Total for company) SOLVE FOR: \begin{tabular}{|r|} \hline \\ \hline($1,000,000) \\ \hline 4.25yrs \\ \hline 7.61% \\ \hline($3,069) \\ \hline \end{tabular} 2024 2025 2026 2027 Yro \begin{tabular}{l|l} Yr1 & Yr2 \\ \hline \end{tabular} Yr4 Yr5 (3 pts) What is the growth rate of Net Income for each of the forecasted years? (HINT: See Week 2 Lesson) \begin{tabular}{|r|r|r|r|r|} \hline 2023 & 2024 & 2025 & 2026 & 2027 \\ \hline 201% & 40% & 29% & 22% & 18% \\ \hline \end{tabular} (4 pts) Compute the following for the forecasted years. (Total company) (HINT: See Week 1 Chapter readings for FCF formula) GIVEN: NOTE 1: Dividends are zero every year. NOTE 2: $750,000 of the $1M invested by the shark was spent on Capital Expenditures in 2023 . No other capital expeditures occurred. SOLVE FOR: \begin{tabular}{|c|r|r|r|r|r|} \hline \multicolumn{1}{|c|}{2023} & \multicolumn{1}{c|}{2024} & \multicolumn{1}{c|}{2025} & \multicolumn{1}{c|}{2026} & \multicolumn{1}{c|}{2027} \\ \hline($377,788) & $843,095 & $1,066,542 & $1,330,902 & $1,554,349 \\ \hline & $8.11 & $10.26 & $12.80 & $14.95 \\ \hline \end{tabular}