Please help with this assignment. The assignment is attached below

1.Generic Motors Corporation is planning to invest $125,000 in year zero (today) in new equipment. This investment is expected to generate net cash flows of $50,000 a year for the next 4 years (years 1-4). The salvage value after 4 years is zero. The discount rate (cost of capital) is 20% a year. Required: a) What is the net present value (NPV) of this project? NPV = $ _____ b) What is the payback period for this project? payback period = _______years d) What is the accounting rate of return (ARR) for this project? To compute ARR, first compute: annual depreciation=$ ______ annual income=$______ average investment=$ ______ ARR = _______% (enter say 10% as 10, not as 0.1 and not as 10%) 2.General Motors (or Toyota) is thinking of investing in new production equipment, which will cost $600 million in year zero, and will generate cost savings of $360 million in year 1, $240 million in year 2, and $180 million in year 3. After 3 years, the salvage value is zero. The cost of capital (discount rate) is 25% for General Motors and 10% for Toyota. (Due to GM's recent bankruptcy, investors are scared to lend it money, so GM has to pay much higher interest rates to attract capital). Required: a) What's the NPV of this project for General Motors? NPV =______ $ million (If you get say $3.52 million, enter 3.52 not 3,520,000. If you get a negative number, enter it with a minus sign, i.e., -3.52 not (3.52)) b) What's the NPV of this project for Toyota? NPV = ______$ million c) If you computed (a) and (b) correctly, the decisions for GM and Toyota should be different. Briefly explain why they are different. 3.Generic Motors Corporation has two divisions, Kadillack and Chevrolay. Their performance for last year is as follows. Kadillack Chevrolay Investment (operating assets) $200 million $800 million Profit $34 million $108 million The required rate of return (cost of capital) for Generic Motors is 10% a year. Required: a) What is the return on investment (ROI) for each division? Kadillack ROI =______ % (enter say 9.5% as 9.5, not as 0.095 and not as 9.5%) Chevrolay ROI =_____ % b) What is the residual income (RI) for each division? Kadillack RI =______ $ million (enter say $3.52 million as 3.52, not as 3,520,000) Chevrolay RI =_____ $ million 4.Use the following data for Apple and Dell for year 2008 (real data, in $ million): Apple Dell Profit (operating income) $6,275 $3,190 Sales revenue $32,479 $61,101 Investment (total assets) $32,460 $27,031 a) compute the ROI for each company. Apple ROI= ____% (if you get say 12.5%, enter 12.5, not 12.5% or 0.125) Dell ROI=______ % b) use the DuPont method to decompose ROI into ROI = profit margin * asset turnover. In other words, compute profit margin and asset turnover for each company: Apple profit margin= ______, asset turnover= _____(Enter both as a fraction of 1, not as percentage. I.e., if the profit margin is 0.045 (4.5%) and asset turnover is 3.42 (342%), enter 0.045 and 3.42) Dell profit margin=_____ , asset turnover= _____ If you multiply profit margin * asset turnover, you should get the ROI from part (a) 5.XYZ Company's net operating profit before taxes is $160 million. The tax rate is 35%. XYZ's total assets (invested capital) are $900 million, and current liabilities are $110 million. The weighted average cost of capital (WACC) is 14%. Compute the economic value added (EVA). To do that, first compute NOPAT = $_____ million (if you get say $55.4million, enter 55.4, not 55,400,000) After that, compute EVA = $______ million (If you get a negative number, enter it with a minus sign. E.g., if you got negative $3.25 million, enter -3.25)