Part A:

ABC expects sales of $19,453,000 this year. The cost of goods sold is expected to be $11,792,000 while selling, general and administrative (SGA) expenses are forecast to be $4,554,000. The firm expects depreciation expenses to be $259,000 and expects to pay an average interest rate of 5.1% on its $4,362,000 of interest-bearing debt. Given its tax rate of 40%, what is the expected net income for ABC this year?(If it is a negative, be sure and enter a negative sign)

Part B:

This year, ABC had sales of $32,785,000 and an Inventory Turnover Ratio (Sales Basis) of 8.7. ABC projects that next year, its sales will grow by 10 percent while its Inventory Turnover Ratio (Sales Basis) will drop to 8.4. If that happens, what will be the total dollar change in inventory between this year and next year?

Part C:

Project Z has an initial outlay of $14,000 and generates positive cash flows in years 1, 2, 3 and 4 of $4,988, $4,979, $2,647, and $3,599 respectively. Using a discount rate of 11.8%, what is the net present value (NPV) of this project? Show your answer to the nearest dollar and if it is negative, be sure to include the negative sign.