Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally likely for the coming year. Management must choose between two mutually exclusive projects. Assume that the project chosen will be the firm$$s only activity and that the firm will close one year from today. The firm is obligated to make a $$4,500$ payment to bondholders at the end of the year. The projects have the same systematic risk, but different volatilities. Consider the following information pertaining to the two projects:

Economy Probability Low$-$Volatility

Project Payoff High$-$Volatility

Project Payoff

Bad $\mathrm{.}50$ $$4,500$ $$3,900$

Good $\mathrm{.}505,2005,800$Wildcat, Inc., has estimated sales $($In millions$)$ for the next four quarters as follows:

Sales for the first quarter of the year after this one are projected at $$180$ million.

Accounts recelvable at the beginning of the year were $$71$ million. Wildcat has a $45-$day

collection perlod.

Wildcat's purchases from suppliers in a quarter are equal to $45$ percent of the next

quarter's forecasted sales, and suppliers are normally paid in $36$ days. Wages, taxes, and

other expenses run about $20$ percent of sales. Interest and dividends are $$16$ million per

quarter.

Wildcat plans a major capital outlay in the second quarter of $$99$ million. Finally, the

company started the year with a $$78$ million cash balance and wishes to maintaln a $$40$

million min$$mum balance.

a$-1.$ Assume that Wildcat can borrow any needed funds on a short$-$term basis at a rate of

$3$ percent per quarter and can invest any excess funds in short$-$term marketable

securitles at a rate of $2$ percent per quarter. Complete the following short$-$term

financlal plan for Wildcat. $($Leave no cells blank $-$ be certaln to enter $"0"$ wherever

required. A negative answer should be Indlcated by a minus sign. Do not round

Intermedlate calculations and enter your answers In millilons, rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$