1. Scenario A: Let us go back to XYZ at the beginning of year 2023. In the beginning of 2023, the company decided not to invest in the project but instead returned $90,000 to shareholders. Assuming revenue and profit-margins stay the same, what is net income and ROE (based on beginning equity, for all questions) for 2023? Remember to provide explanations and show work.

2. Scenario B: Suppose the company invests in the project described above but did not return cash to shareholders. Assume that there is no depreciation associated with the project. What is net income and ROE for 2023?

3. Scenario C: Suppose the company returns $90,000 to shareholders, but then borrows $90,000 at a rate of 5% to invest in the project. What is the interest expense in 2023? Not a trick question.

4. Scenario C: Suppose the same facts as in the question above. The company returned cash to shareholders. In addition, the company invests in the project and assume that there is no depreciation associated with the project. What is net income and ROE for 2023?

5. Please complete the Scenarios spreadsheet that summarizes your answers to the previous question. Attach.

6. 	Year 2023 Scenarios
   	A	B	C
   Return cash to shareholders	Yes		Yes
   Borrowing			Yes
   Invest in project		Yes	Yes
   	Please fill in all boxes below
   Sales
   Cost of Goods Sold (all expenses except interest)
   Gross Profit
   Interest Expense
   Net Income (ignoring taxes)
   Owners' Equity:
   Beginning OE, after any return of cash to shareholders
   Plus Net Income
   Ending OE
   Average Equity	Do not fill; use beginning equity for ROE
   ROE