Please answer the questions

5. You are opening your own business and estimate the following expenses and revenues. Revenues will be $351,000 in year 1 and will grow at 7% for the next two years. Cost of goods sold will be $125300 in year one and will go at 8% for the next two years. Operating expense will be $353000 in year one and will grow at 4% for the next two years. Taxes will be 2 \"H: per year for all years. Depreciation will be $32,000 in year 1, $44,000 in year 2. {1335.000 in year 3. Please estimate the cash ows from operations for years 1.2.3. 6. Dorothy Corporation has a project with the following cash flows: (remember the year zero number is negative) Year 0 Year 1 Year 2 Year 3 Cash ows Sl,00 03000 $400,000 $600,000 $3 00,000 Using a 12% cost of capital. what is the net present value of this project? Should this project be accepted by Dorothy? 7. Please rework the prior problem with a 6% cost of money. What is the new net present value: and should Dorothy accept the project? 1. Michela Corporation expects the following revenues, cash expenses, and depreciation charges in the future: Year 2 3 Revenues $89,000 $106,000 $145,000 Cost of goods sold $38,000 $49,000 $53,000 Selling expenses $11,000 $13,000 $14,000 Other cash $10,000 $11,000 $12,000 operating expenses Depreciation $9,500 $13,500 $15,000 Michela is in the 22 percent tax bracket. Please compute the after-tax cash flows from operations for this investment for each of the years. 2. Albert Corporation estimates above the business needs 4 percent of revenues as a cash balance, 11 percent of revenues as an inventory balance, 6 percent of revenues an accounts payable balance, and 5 percent of revenues as accrued expenses balance. All these balances would be needed at the beginning of each year and are estimated from the year- end annual estimates of revenues and cash expenses given below: Year 2 3 Revenues $100,000 $150,000 $200,000 Please calculate the account balances for cash, inventory, accounts payable, and accrued expenses for years 0, 1,2. 3. Mable Corporation in forecast the cash flows for a project estimates that it will need $50,000 in increased assets in year 1 and will receive $20,000 from increased liabilities in the same year. What is Mable's net inflow or outflow for year 1. 4. Myles Corporation is considering a new computer system (equipment) that can be purchased for $140,000. Delivery will cost $8,200 and setup will cost $12,000. What is the initial cost of this new computer?8. (this last one is worth 3 points) You are thinking of opening an internet coffee shop and estimate the following cash flows. The cost of the establishment is $1.200,000 for the building and $250,000 for equipment. The business will earn $842,000 per year in revenue and have cash expenses of $533,000 per year during its five years of operation. Depreciation on the building and equipment will be $80,000 per year. At the end of ve years you expect to sell the coffee shop for an aftertax cash disposition value of $600,000. No other cash ows will occur during the 5 years of operation. Using a 25 percent tax rate, and a 9 percent cost of money, what is the net present value of this business\