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Please help. Thanks Mitchie Manufacturing manufactures over 20,000 different products made from metal, including building materials, tools, and furniture parts. The manager of the Furniture

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Mitchie Manufacturing manufactures over 20,000 different products made from metal, including building materials, tools, and furniture parts. The manager of the Furniture Parts division has proposed that his division expand into bicycle parts as well. The Furniture Parts division currently generates cash revenues of $4,550,000 and incurs cash costs of $3,400,000, with an investment in assets of $12, 130,000. One-quarter of the cash costs are direct labour. i (Click the icon to view the additional information.) (Click the icon to view the present value of $1 factors.) (Click the icon to view the present value annuity of $1 factors.) Required Requirement 1. Separate the cash flows into four groups: (1) net initial investment cash flows, (2) cash flows from operations, (3) cash flows from terminal disposal of investment, and (4) cash flows not relevant to the capital budgeting problem. First identify and calculate the net initial investment cash flows. (Use parentheses or a minus sign for cash outflows.) Net initial investment Net initial investment Now identify and calculate the cash flows from operations. (Use parentheses or a minus sign for cash outflows.) Cash flows from operationsAnnual cash flows from operations with new equipment Deduct: Annual after-tax cash flows from operations Add: Total cash flows from operations (after-tax) Now identify and calculate the cash flows from the terminal disposal of investment. (Use parentheses or a minus sign for cash outflows.) Terminal disposal of investmentCash flow from terminal disposal of investment Now identify the cash flows that are not relevant to the capital budgeting of this situation. Select all that apply. A. Costs of the furniture parts division except for direct labour OB. The investment in the furniture parts division OC. Increase in cash overhead costs OD. CFO salary OE. Direct labour costs of the furniture parts division OF. The revenues in the furniture parts division Requirement 2. Calculate the NPV of the expansion project and comment on your analysis. First calculate the NPV of the expansion project. (Use factors rounded to three decimal places, X.XXX. Round your final answer to the nearest whole dollar. Use parentheses or a minus sign for a negative NPV.) NPV = $NPV = $ Now comment on the analysis. Since the net present value is this a good investment for a company that requires a(n) % rate of return. Mitchie expand into bicycle parts.The manager estimates that the expansion of the business will require an investment in working capital of $49,000. Because the company already has a facility, there would be no additional rent or purchase costs for a building, but the project would generate an additional $430,000 in annual cash overhead. Moreover, the manager expects annual materials cash costs for bicycle parts to be $1,660,000, and labour for the bicycle parts to be about the same as the labour cash costs for furniture parts. The Controller of Mitchie, working with various managers, estimates that the expansion would require the purchase of equipment with a $4,950,000 cost and an expected disposal value of $440,000 at the end of its 10-year useful life. Depreciation would occur on a straight-line basis. The CFO of Mitchie determines the firm's cost of capital as 8%. The CFO's salary is $490,000 per year. Adding another division will not change that. The CEO asks for a report on expected revenue for the project, and is told by the marketing department that it might be able to achieve cash revenue of $4,000,000 annually from bicycle parts. Mitchie Manufacturing has a tax rate of 30%

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