Need help with these 3 problems from managerial accounting. Looking to score 100%. Serious tutors only, please

ACT 5733 - Advanced Managerial Accounting Spring 2 2015 HW #2 Directions: Answer all three questions. Please submit your work in Word or PDF formats only. You can submit an Excel file to support calculations, but please \"cut and paste\" your solutions into the Word or PDF file. Be sure to show how you did your calculations. Also, please be sure to include your name at the top of the first page of your file. You can use any sources you wish, except for other people. Please be sure to document any source you use. The assignment is due by 9:00 AM on Wednesday, July 15th. Please run spell check and proofread your answers. If you have any questions, please e-mail me at af878@nova.edu or andrew.felo@gmail.com. Good luck! Question #1 Consider the following potential investment, which has the same risk as the firm's other projects: Time 0 1 2 3 4 5 6 7 Cash Flow -$185,000 $32,000 $38,000 $38,000 $40,000 $40,000 $45,000 $46,000 a) What are the investment's payback period, IRR, and NPV, assuming the firm's WACC is 8%? b) If the firm requires a payback period of less than 4 years, should this project be accepted? Be sure to justify your choice. c) Based on the IRR and NPV rules, should this project be accepted? Be sure to justify your choice. d) Which of the decision rules (payback, NPV, or IRR) do you think is the best rule for a firm to use when evaluating projects? Be sure to justify your choice. Question #2 A firm believes it can generate an additional $500,000 per year in revenues for the next 5 years if it replaces existing equipment that is no longer usable with new equipment that costs $480,000. The existing equipment is fully depreciated and has a market value of $2,000. The firm expects to be able to sell the new equipment when it is finished using it (after 5 years) for $30,000. Variable costs are expected to total 60% of revenue. The additional sales will require an initial investment in net working capital of $60,000, which is expected to be recovered at the end of the project (after 5 years). Assume the firm uses straight-line depreciation, its marginal tax rate is 35%, and the discount rate for the project is 14%. a) How much value will this new equipment create for the firm? b) At what discount rate will this project break even? c) Should the firm purchase the new equipment? Be sure to justify your recommendation. Question #3 Your company is interested in having a new facility constructed. The contractor expects that it will take approximately 3 years to complete the building. The contractor has offered you three payment plans for the building. They are as follows: Time Today 1 year from now 2 years from now 3 years from now Plan 1 $400,000 $1,300,000 $1,300,000 $1,300,000 Plan 2 $0 $2,175,000 $0 $2,175,000 Plan 3 $600,000 $0 $1,900,000 $1,900,000 The CFO of your company has asked you to provide recommendation concerning which payment plan to accept. What is your recommendation? Assume your weighted-average cost of capital is 12%