Respected sir/madam i am unable to do these problems i need help immediately sir i have to submit it. there are only three problems so please help me immediately. thank you.

1. A firm is considering an investment in a new machine with a price of $18.2 million to replace its existing machine. The current machine has a book value of $6.2 million and a market value of $4.7 million. The new machine is expected to have a fouryear life, and the old machine has four years left in which it can be used. If the firm replaces the old machine with the new machine, it expects to save $6.90 million in operating costs each year over the next four years. Both ma chines will have no salvage value in four years. If the firm purchases the new machine, it will also need an investment of $270,000 in net working capital. The required return on the invest ment is 11 percent, and the tax rate is 40 percent. Requirement 1: a. What is the NPV of the decision to purchase a new machine? (Do not round intermediate calcu lations and round your answer to 2 decimal places (e.g., 32.16). Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).) NPV $ ? b. What is the IRR of the decision to purchase a new machine? (Do not round intermediate calcu lations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) IRR%? Requirement 2: a. What is the NPV of the decision to purchase the old machine? (Do not round intermediate cal culations and round your answer to 2 decimal places (e.g., 32.16). Enter your answer in dollars, not millions of dollars (e.g. 1,234,567). A negative amount should be indicated by a minus sign.) NPV $ ? b. What is the IRR of the decision to purchase the old machine? (Do not round intermediate calcu lations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16). A negative amount should be indicated by a minus sign.) IRR ? 2 Zoysia University must purchase mowers for its landscape department. The university can buy six EVF mowers that cost $8,400 each and have annual, yearend maintenance costs of $1,850 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy seven AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $7,400 and have annual, yearend maintenance costs of $2,150 per mower. Each AEH mower will have a resale value of $900 at the end of seven years. The university's opportunity cost of funds for this type of investment is 8 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) EAC EVF $ ? AEH $ ? 3. Consider two mutually exclusive R&D projects that ADM is considering. Assume the discount rate for ADM is 11 percent. Project A: Server CPU .13 micron processing project By shrinking the die size to .13 micron, ADM will be able to offer server CPU chips with lower power consumption and heat generation, meaning faster CPUs. Project B: New telecom chip project Entry into this industry will require introduction of a new chip for cell phones. The know how will require a large amount of upfront capital, but success of the project will lead to large cash flows later on. Year Project A Project B 0 $ 725,000 $ 932,000 1 344,000 259,000 2 361,000 366,000 3 257,000 4 182,000 5 124,000 Complete the following table: Project A Project B NPV 364,000 416,000 501,000 Requirement A a Net cash outflow =cost of new machine-(tax payable/saving on sale+market value of old machine) =1820000-(.04(690000470000)+470000) =1290000 Cost of working Capital=270000 Total Net Flow =1290000+270000=1560000 Change in cash Flow =(change in operating cost-change in depreciation)(1-tax rate)+ Change in Depreciation =[690000-(1820000/4-620000/4)] (1-.4)+(455000-155000) =534000 Present value of Benefit=Present value of yearly Cash flow =534000 x PVIFA(11%,4) =534000x3.10 =1655400 Net Present value =PV of Benefit-PV of Cost =1655400-1560000 =95400 b IRR=13.81% IRR=13%+NPV@13%/NPV@13%NpV@14%(14%-13%) =13%+25980/25980-(-6060)x1% =13.81% Requirement B a NPV Saving =1820000+270000-470000 =1620000 Out flow=(6900000-620000/4)(1-.4)155000 =476000 Present Value=476000 xPVIFA(11%,4) =476000x3.10 =1475600 Net Present value=1620000-1475600 =144400 b IRR=6.70% IRR=6%+NPV@6%/NPV@6%NpV@7%(7%-6%) =6%+26960/26960-(-11120)x1% =6.70% Requirement A a Net cash outflow =cost of new machine-(tax payable/saving on sale+market value of old machine) =1820000-(.04(690000470000)+470000) =1290000 Cost of working Capital=270000 Total Net Flow =1290000+270000=1560000 Change in cash Flow =(change in operating cost-change in depreciation)(1-tax rate)+ Change in Depreciation =[690000-(1820000/4-620000/4)] (1-.4)+(455000-155000) =534000 Present value of Benefit=Present value of yearly Cash flow =534000 x PVIFA(11%,4) =534000x3.10 =1655400 Net Present value =PV of Benefit-PV of Cost =1655400-1560000 =95400 b IRR=13.81% IRR=13%+NPV@13%/NPV@13%NpV@14%(14%-13%) =13%+25980/25980-(-6060)x1% =13.81% Requirement B a NPV Saving =1820000+270000-470000 =1620000 Out flow=(6900000-620000/4)(1-.4)155000 =476000 Present Value=476000 xPVIFA(11%,4) =476000x3.10 =1475600 Net Present value=1620000-1475600 =144400 b IRR=6.70% IRR=6%+NPV@6%/NPV@6%NpV@7%(7%-6%) =6%+26960/26960-(-11120)x1% =6.70%