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Please help answer all questions in attachment and show work. (4,6-10) (PLEASE only give answers that you are very confident about, if u are unsure
Please help answer all questions in attachment and show work. (4,6-10) (PLEASE only give answers that you are very confident about, if u are unsure or dontknow, please don'tjust guess)
4. Country Breads uses specialized ovens to bake its bread. One oven costs $189,000 and lasts about 7 years before it needs to be replaced. The annual operating cost per oven is $23,800. What is the equivalent annual cost of an oven if the required rate of return is 11 percent? -$96,210.00 -$50,561.10 -$48,313.04 -$63,908.69 -$52,407.49 6. Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.79 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,110,000 in annual sales, with costs of $805,000. The tax rate is 35 percent and the required return on the project is 12 percent. What is the project's NPV? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 29150.31 Unsure of this answer, please double check 7. A proposed new investment has projected sales of $690,000. Variable costs are 60 percent of sales, and fixed costs are $158,000; depreciation is $59,000. Prepare a pro forma income statement assuming a tax rate of 30 percent. What is the projected net income? (Input all amounts as positive values. Do not round intermediate calculations.) Sales $ 690000 Variable costs 414000 Fixed costs 158000 Depreciation 59000 EBT $ 59000 Taxes Net income 17700 $ 41300 8. Your firm is contemplating the purchase of a new $595,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $63,000 at the end of that time. You will save $225,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $78,000 (this is a one-time reduction). If the tax rate is 35 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % 22.68 Unsure of this answer, please double check 9. A proposed new project has projected sales of $118,000, costs of $52,000, and depreciation of $12,100. The tax rate is 34 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Unsure of answers, please double check Approaches Operating cash flow $ EBIT + Depreciation - Taxes 47674 $ Top-down 47674 $ Tax-shield 47674 $ Bottom-up 47674 Is the answer the same in each case? Yes No 10. Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $.47 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $3.50 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can't tell which bulbs are older or newer). If you require a 9 percent return, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.) Break-even cost $Step by Step Solution
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