please answer all requirements and use data tables/more info/etc. all numbers needed are included in data tables!!! pop ups included in screenshots
follow any rounding instructions or whole number
thank you !
A-1 Chips is a manufacturer of prototype chips based in Buffalo, New York, Click the icon to view the prototype chips information) Click the icon to view information on the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Inflow Requirements 1 and 2. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period and calc net present value for each alternative. Let's begin with the "modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a nega present value of net cash flows) Net Cash Present Value PV factor of Cash Flows Net initial investment After-tax cash flows from operations: Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 X X X DIE - X More info Next year, in 2021, A-1 Chips expects to deliver 622 prototype chips at an average price of $70,000. A-1 Chips' marketing vice president forecasts growth of 75 prototype chips per year through 2027. That is, demand will be 622 in 2021. 697 in 2022, 772 in 2023, and so on. The plant cannot produce more than 597 prototype chips annually. To meet future demand, A-1 Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,100,000 if the plant is replaced. If the plant is modernized, the costs to modernize it are to be capitalized and depreciated over the useful life of the modernized plant. The old equipment is retained as part of the "modernize" alternative. A-1 Chips is a manufacturer of prototype chips based in Buffalo, New York (Click the icon to view the prototype chips information) Click the icon to view information on the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirements 1 and 2. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period and calc net present value for each alternative. Let's begin with the modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a nega present value of net cash flows.) Net Cash Present Value PV factor Inflow of Cash Flows Net initial investment After-tax cash flows from operations: Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 X - Data table The following data on the two options are available: Modernize Replace Initial Investment in 2021 $ 36,500,000 $ 65,500,000 Terminal disposal value in 2027 $ 7,500,000 $ 17,300,000 Useful life 7 years 7 years Total annual cash operating cost per prototype chips 53,000 $ 47.000 A-1 Chips uses straight-line depreciation, assuming zero terminal disposal value. For simplicity, we assume no change in prices or costs in future years. The investment will be made at the beginning of 2021, and all transactions thereafter occur on the last day of the year. A-1 Chips' required rate of return is 6%. There is no difference between the "modernize" and "replace alternatives in terms of required working capital, A-1 Chips pays a 50% tax rate on all income. Proceeds from sales of equipment above book value are taxed at the same 50% rate. A-1 Chips is a manufacturer of prototype chips based in Buffalo, New York (Click the icon to view the prototype chips information.) (Click the icon to view information on the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirements 1 and 2. Calculate the after-tax cash inflows and outfiows of the modernize" and "replace" alternatives over the 2021 - 2027 period and calc net present value for each alternative. Let's begin with the "modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a nega present value of net cash flows.) Net Cash Present Value PV factor Inflow of Cash Flows Net initial investment After-tax cash flows from operations: Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 X X x - X Requirements 1. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace alternatives over the 2021 - 2027 period. 2. Calculate the net present value of the "modernize" and "replace" alternatives. 3. Suppose A-1 Chips is planning to build several more plants. It wants to have the most advantageous tax position possible. A-1 Chips has been approached by Spain, Malaysia, and Australia to construct plants in their countries. Briefly describe in qualitative terms the income tax features that would be advantageous to A-1 Chips. A-1 Chips is a manufacturer of prototype chips based in Buffalo, New York, Click the icon to view the prototype chips information) Click the icon to view information on the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Inflow Requirements 1 and 2. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period and calc net present value for each alternative. Let's begin with the "modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a nega present value of net cash flows) Net Cash Present Value PV factor of Cash Flows Net initial investment After-tax cash flows from operations: Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 X X X DIE - X More info Next year, in 2021, A-1 Chips expects to deliver 622 prototype chips at an average price of $70,000. A-1 Chips' marketing vice president forecasts growth of 75 prototype chips per year through 2027. That is, demand will be 622 in 2021. 697 in 2022, 772 in 2023, and so on. The plant cannot produce more than 597 prototype chips annually. To meet future demand, A-1 Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,100,000 if the plant is replaced. If the plant is modernized, the costs to modernize it are to be capitalized and depreciated over the useful life of the modernized plant. The old equipment is retained as part of the "modernize" alternative. A-1 Chips is a manufacturer of prototype chips based in Buffalo, New York (Click the icon to view the prototype chips information) Click the icon to view information on the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Requirements 1 and 2. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace" alternatives over the 2021 - 2027 period and calc net present value for each alternative. Let's begin with the modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a nega present value of net cash flows.) Net Cash Present Value PV factor Inflow of Cash Flows Net initial investment After-tax cash flows from operations: Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 X - Data table The following data on the two options are available: Modernize Replace Initial Investment in 2021 $ 36,500,000 $ 65,500,000 Terminal disposal value in 2027 $ 7,500,000 $ 17,300,000 Useful life 7 years 7 years Total annual cash operating cost per prototype chips 53,000 $ 47.000 A-1 Chips uses straight-line depreciation, assuming zero terminal disposal value. For simplicity, we assume no change in prices or costs in future years. The investment will be made at the beginning of 2021, and all transactions thereafter occur on the last day of the year. A-1 Chips' required rate of return is 6%. There is no difference between the "modernize" and "replace alternatives in terms of required working capital, A-1 Chips pays a 50% tax rate on all income. Proceeds from sales of equipment above book value are taxed at the same 50% rate. A-1 Chips is a manufacturer of prototype chips based in Buffalo, New York (Click the icon to view the prototype chips information.) (Click the icon to view information on the options.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirements 1 and 2. Calculate the after-tax cash inflows and outfiows of the modernize" and "replace" alternatives over the 2021 - 2027 period and calc net present value for each alternative. Let's begin with the "modernize" alternative. Start by computing the present value of the after-tax cash flows from operations, then calculate the present value the after-tax cash savings from depreciation and the terminal disposal value, and finally, determine the total net present value (NPV) of the investment for the "modernize" alternative. (Round intermediary calculations and your final answers to the nearest whole dollar. Use a minus sign or parentheses for a nega present value of net cash flows.) Net Cash Present Value PV factor Inflow of Cash Flows Net initial investment After-tax cash flows from operations: Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 X X x - X Requirements 1. Calculate the after-tax cash inflows and outflows of the "modernize" and "replace alternatives over the 2021 - 2027 period. 2. Calculate the net present value of the "modernize" and "replace" alternatives. 3. Suppose A-1 Chips is planning to build several more plants. It wants to have the most advantageous tax position possible. A-1 Chips has been approached by Spain, Malaysia, and Australia to construct plants in their countries. Briefly describe in qualitative terms the income tax features that would be advantageous to A-1 Chips
