the question changed, please disregard the first one
pes possible Question Help The Nielsen Company is a national portable building manufacturers Bertion plant will become ide on December 31, 2017 Mary Carter, the corporate controler, has been asked to look at the options regarding the plant (Click the icon to view the options) Present of Stable Prosent Valeo Any of $1 Future Value of $1 table Future Value Annuity of the Read the moments Nielsen Company treats all cash flows as if they occur at the end of the year, and uses on the tax required rate of return of 8%. Nielsen is subject to a 20% tax rate on will income, including capital gains Requirement 1. Calculate not present value of each of the options and determine which option Nielsen should select using the NPV criterion The not present value of Option is Begin the calculation of Option 2 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash infow for the material purchases discount. Finally determine the tax cash intow on sale or plant and the total net present value (NPV) of Option 2 (Use factors to three decimal places, XXXX, and use a minus signor pentheses for a negative representanter the represente altre investment rounded to the nearest whole dollar) Net Cash Present Value PV factor Inflow of Cash Flows Present value of net cash flows, Option 2 Alex cash inflows from rent: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 - Choose from any list or enterary number in the input fields and then continue to the next question Save for at Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements The Nielsen Company is a national portable building manufacturer. Its Benton plant will become ide on December 31, 2017 Mary Carter, the corporate controller, has been asked to look at three options regarding the plant Click the icon to view the options.) Nielsen Company trents all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8% Nielsen is subject to a 20% tax rate on all income, including capital gains. After-tax cash inflows from operations (excluding depreciation); Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 After-tax cash savings from annual depreciation deductions: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Present value of after-tax cash flow from sale of plant Choose from any list or enter any number in the input fields and then continue to the next question Save for Later FUMO VOL Future Value of Annuity of $1 table Read the requirements Click the icon to view the options.) Nielson Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8%. Nielsen is subject to a 20% tax rate on all income, including capital gains. Present value of after-tax cash flow from sale of plant Net present value, Option 3 Nielsen Company should choose for the Benton plant Requirement 2. What nonfinancial factors should Nielsen consider before making its choice? For each option, select one or more nonfinancial factors that Nielsen should consider. (Select all that apply a box is not used in the table, leave the box empty) Option 1 Ootion 2 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later 5 * esc F1 7 % 5 # 3 8 $ 4 2 Nielsen Company should choose -tax required tax rate on all income, including capital gains. for the enton plant. quement Requirement 2. What nonfinancial factors should Nielsen consider before making its choice? For each option, select one or more nonfinancial factors that Nielsen should consider. (Select all that apply. If a box is not used in the table, leave the box empty) Option 1 Option 2 Option 3 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later esc 20 FI F3 A * a # 3 $ 4 % 5 & 7 2 6 8 und of the year, and uses an after-tax required %. Nielsen is subject to a 20% tax rate on all income, including capital gains. Nielsen Company should choose for the Benton plant Read the requirements Requirement 2. What nonfinancial factors should Nielsen consider before making its choice? For each option, select one or more nonfinancial factors that Nielsen should consider. (Select all that apply a box is not used in the table, leave the box empty) Option 1 Option 2 Failure to recognize savings from depreciation Gives Nielsen immediate liquidity Gives Nielsen a closer relationship with the supplier Has Nielsen entering a new line of business If successful option could be expanded to cover other accessories Limits Nielsen's flexibility if the supplier's quality is not comparable to competitors Limits Nielsen's liquidity due to working capital requirements Potential risks of falling to meet predicted sales Option 3 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later SO esc 30 19 A $ 4 % 5 & 7 8 6 2 3 Y U 01 T E W Q 70 Question Help The Ralling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017 Mary Carter, the corporate controler, has been asked to look at the options regarding the plant Click the loon to view the options.) Raling Company treats all cash flows as if they occur at the end of the year, and use an after tax required rate of return of 8%. Rolling is subject to a 40% tax rate on al income, including capital gains Present Value of $1 table Present Value of Annuity of $1 table Euture Value of Stable Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculato not present value of each of the options and determine which option Rating should select using the NPV criterion The ne present value of Option is Begin the calculation of Option 2 by determining the ather-tax cash Wow for rent. Then, determine the after-tax cash Infow for the material purchases discount. Finally, determine the after tax cash inflow on sale of the plant and the total net present value (NPV) of Option 2. (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative ret prosent value. Enter the represent value of the investment rounded to the nearest whole dollar) Net Cash Present Value PV factor Inflow of Cash Flows Present value of net cash flows, Option 2 Metax cash flows from rent Dec 31, 2018 Dec 31, 2010 Dec 31, 2020 Dec 31, 2021 Ahorax cashindows from discount on purchase Choose from any list or enter any number in the input fields and then continue to the next question Save for MacBook Pro 5 4 % 5 1 0 7 8 9 o W E R U Question Help The Rolling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017 Mary Carter, the corporate controller, has been asked to look of three options regarding the plant (Click the icon to view the options.) Prosent Value of $1 table Prosent Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 tablo Read the requirements Ralling Company treats all cash flow as they occur at the end of the year, and uses an after-tax required rate of return of 8%. Raling is subject to a 40% tax rate on all income, including capital gains After-tax cash inflows from discount on purchases: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Present value of after-tax cash flow from sale of plant Net present value Option 2 Begin the calculation of Option 3 by determining the after-tax cash inflow from operations (excluding depreciation). Then, determine the after-tax cash savings from annual depreciation deductions. Finally, determine the after-tax cash inflow on sale of the plant and the total net present value (NPV) of Option 3. (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative present value of net cash flows. Enter the represent value of the investment rounded to the nearest whole dollar) Net Cash Inflow Present Value of Cash Flows PV factor Present value of net cash flows, Option 3 Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later MacBook Pro i (Click the icon to view the options.) Future Value of Annuity of $1 table Read the requirements Ralling Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required ate of return of 8%. Ralling is subject to a 40% tax rate on all income, including capital gains. Ner Gas Present Value Inflow of Cash Flows PV factor Present value of net cash flows, Option 3: Initial equipment investment After-tax cash inflows from operations (excluding depreciation): Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 After-tax cash savings from annual depreciation deductions: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Present Value of $1 tablo Prosent Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table The Ralling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017. Mary Carter, the corporate controller, has been asked to look at three options regarding the plant: (Click the icon to view the options.) Ralling Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8%. Ralling is subject to a 40% tax rate on all income, including capital gains. Present value of after-tax cash flow from sale of plant Read the requirements. Net present value, Option 3 Ralling Company should choose for the Benton plant Requirement 2. What nonfinancial factors should Ralling consider before making its choice? For each option, select one or more nonfinancial faBors that Raling should consider. (Select all that apply. If a box is not used in the table, leave the box empty.) Option 1 Option 2 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro December 31, 2017 Mary Carter, the corporate controller, has been asked to look at three options regarding the plant: (Click the icon to view the options.) Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Ralling Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8%. Ralling is subject to a 40% tax rate on all income, including capital gains. Net present value. Option 3 Ralling Company should choose for the Benton plant. Requirement 2. What nonfinancial factors should Ralling consider before making its choice? For each option, select one or more nonfinancial factors that Ralling should consider. (Select all that apply. If a box is not used in the table, leave the box empty.) Option 1 Option 2 Option 3 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Requirement 2. What nonfinancial factors should Ralling consider before making its choice? For each option, select one or more nonfinancial factors that Ralling should consider. (Select all that apply. If a box is not used in the Option 1 Option 2 Failure to recognize savings from depreciation Gives Ralling immediate liquidity Gives Ralling a closer relationship with the supplier Has Ralling entering a new line of business If successful, option could be expanded to cover other accessories Limits Ralling's flexibility if the supplier's quality is not comparable to competitors Limits Ralling's liquidity due to working capital requirements Potential risks of failing to meet predicted sales Option 3 Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later MacBook Pro CSC 30 F F3 F4 they occur at the e 40% tax rate on all for the Bent s should Ralling con inancial factors that pty) Option 1: The plant, which has been fully depreciated for tax purposes, can be sold immediately for $720,000. Option 2: The plant can be leased to the Timber Corporation, one of Ralling's suppliers, for 4 years. Under the lease terms, Timber would pay Ralling $174,000 rent per year (payable at year-end) and would grant Ralling a $62,000 annual discount from the normal price of lumber purchased by Ralling, (Assume that the discount is received at year-end for each of the 4 years.) Timber would bear all of the plant's ownership costs. Ralling expects to sell this plant for $300,000 at the end of the 4-year lease. Option 3: The plant could be used for 4 years to make porch swings as an accessory to be sold with a portable building. Fixed overhead costs (a cash outflow) before any equipment upgrades are estimated to be $27,000 annually for the 4-year period. The swings are expected to sell for $50 each. Variable cost per unit is expected to be $26. The following production and sales of swings are expected: 2018, 13,000 units: 2019, 18,000 units; 2020, 16,000 units: 2021, 9,000 units. In order to manufacture the swings, some of the plant equipment would need to be upgraded at an immediate cost of $170,000. The equipment would be depreciated using the straight-line depreciation method and zero terminal disposal value over the 4 years it would be in use. Because of the equipment upgrades, Ralling could sell the plant for $400,000 at the end of 4 years. No change in working capital would be required Print Done mber in the input field MacBook Pro pes possible Question Help The Nielsen Company is a national portable building manufacturers Bertion plant will become ide on December 31, 2017 Mary Carter, the corporate controler, has been asked to look at the options regarding the plant (Click the icon to view the options) Present of Stable Prosent Valeo Any of $1 Future Value of $1 table Future Value Annuity of the Read the moments Nielsen Company treats all cash flows as if they occur at the end of the year, and uses on the tax required rate of return of 8%. Nielsen is subject to a 20% tax rate on will income, including capital gains Requirement 1. Calculate not present value of each of the options and determine which option Nielsen should select using the NPV criterion The not present value of Option is Begin the calculation of Option 2 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash infow for the material purchases discount. Finally determine the tax cash intow on sale or plant and the total net present value (NPV) of Option 2 (Use factors to three decimal places, XXXX, and use a minus signor pentheses for a negative representanter the represente altre investment rounded to the nearest whole dollar) Net Cash Present Value PV factor Inflow of Cash Flows Present value of net cash flows, Option 2 Alex cash inflows from rent: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 - Choose from any list or enterary number in the input fields and then continue to the next question Save for at Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements The Nielsen Company is a national portable building manufacturer. Its Benton plant will become ide on December 31, 2017 Mary Carter, the corporate controller, has been asked to look at three options regarding the plant Click the icon to view the options.) Nielsen Company trents all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8% Nielsen is subject to a 20% tax rate on all income, including capital gains. After-tax cash inflows from operations (excluding depreciation); Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 After-tax cash savings from annual depreciation deductions: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Present value of after-tax cash flow from sale of plant Choose from any list or enter any number in the input fields and then continue to the next question Save for Later FUMO VOL Future Value of Annuity of $1 table Read the requirements Click the icon to view the options.) Nielson Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8%. Nielsen is subject to a 20% tax rate on all income, including capital gains. Present value of after-tax cash flow from sale of plant Net present value, Option 3 Nielsen Company should choose for the Benton plant Requirement 2. What nonfinancial factors should Nielsen consider before making its choice? For each option, select one or more nonfinancial factors that Nielsen should consider. (Select all that apply a box is not used in the table, leave the box empty) Option 1 Ootion 2 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later 5 * esc F1 7 % 5 # 3 8 $ 4 2 Nielsen Company should choose -tax required tax rate on all income, including capital gains. for the enton plant. quement Requirement 2. What nonfinancial factors should Nielsen consider before making its choice? For each option, select one or more nonfinancial factors that Nielsen should consider. (Select all that apply. If a box is not used in the table, leave the box empty) Option 1 Option 2 Option 3 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later esc 20 FI F3 A * a # 3 $ 4 % 5 & 7 2 6 8 und of the year, and uses an after-tax required %. Nielsen is subject to a 20% tax rate on all income, including capital gains. Nielsen Company should choose for the Benton plant Read the requirements Requirement 2. What nonfinancial factors should Nielsen consider before making its choice? For each option, select one or more nonfinancial factors that Nielsen should consider. (Select all that apply a box is not used in the table, leave the box empty) Option 1 Option 2 Failure to recognize savings from depreciation Gives Nielsen immediate liquidity Gives Nielsen a closer relationship with the supplier Has Nielsen entering a new line of business If successful option could be expanded to cover other accessories Limits Nielsen's flexibility if the supplier's quality is not comparable to competitors Limits Nielsen's liquidity due to working capital requirements Potential risks of falling to meet predicted sales Option 3 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later SO esc 30 19 A $ 4 % 5 & 7 8 6 2 3 Y U 01 T E W Q 70 Question Help The Ralling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017 Mary Carter, the corporate controler, has been asked to look at the options regarding the plant Click the loon to view the options.) Raling Company treats all cash flows as if they occur at the end of the year, and use an after tax required rate of return of 8%. Rolling is subject to a 40% tax rate on al income, including capital gains Present Value of $1 table Present Value of Annuity of $1 table Euture Value of Stable Future Value of Annuity of $1 table Read the requirements Requirement 1. Calculato not present value of each of the options and determine which option Rating should select using the NPV criterion The ne present value of Option is Begin the calculation of Option 2 by determining the ather-tax cash Wow for rent. Then, determine the after-tax cash Infow for the material purchases discount. Finally, determine the after tax cash inflow on sale of the plant and the total net present value (NPV) of Option 2. (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative ret prosent value. Enter the represent value of the investment rounded to the nearest whole dollar) Net Cash Present Value PV factor Inflow of Cash Flows Present value of net cash flows, Option 2 Metax cash flows from rent Dec 31, 2018 Dec 31, 2010 Dec 31, 2020 Dec 31, 2021 Ahorax cashindows from discount on purchase Choose from any list or enter any number in the input fields and then continue to the next question Save for MacBook Pro 5 4 % 5 1 0 7 8 9 o W E R U Question Help The Rolling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017 Mary Carter, the corporate controller, has been asked to look of three options regarding the plant (Click the icon to view the options.) Prosent Value of $1 table Prosent Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 tablo Read the requirements Ralling Company treats all cash flow as they occur at the end of the year, and uses an after-tax required rate of return of 8%. Raling is subject to a 40% tax rate on all income, including capital gains After-tax cash inflows from discount on purchases: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Present value of after-tax cash flow from sale of plant Net present value Option 2 Begin the calculation of Option 3 by determining the after-tax cash inflow from operations (excluding depreciation). Then, determine the after-tax cash savings from annual depreciation deductions. Finally, determine the after-tax cash inflow on sale of the plant and the total net present value (NPV) of Option 3. (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative present value of net cash flows. Enter the represent value of the investment rounded to the nearest whole dollar) Net Cash Inflow Present Value of Cash Flows PV factor Present value of net cash flows, Option 3 Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later MacBook Pro i (Click the icon to view the options.) Future Value of Annuity of $1 table Read the requirements Ralling Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required ate of return of 8%. Ralling is subject to a 40% tax rate on all income, including capital gains. Ner Gas Present Value Inflow of Cash Flows PV factor Present value of net cash flows, Option 3: Initial equipment investment After-tax cash inflows from operations (excluding depreciation): Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 After-tax cash savings from annual depreciation deductions: Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Present Value of $1 tablo Prosent Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table The Ralling Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017. Mary Carter, the corporate controller, has been asked to look at three options regarding the plant: (Click the icon to view the options.) Ralling Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8%. Ralling is subject to a 40% tax rate on all income, including capital gains. Present value of after-tax cash flow from sale of plant Read the requirements. Net present value, Option 3 Ralling Company should choose for the Benton plant Requirement 2. What nonfinancial factors should Ralling consider before making its choice? For each option, select one or more nonfinancial faBors that Raling should consider. (Select all that apply. If a box is not used in the table, leave the box empty.) Option 1 Option 2 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro December 31, 2017 Mary Carter, the corporate controller, has been asked to look at three options regarding the plant: (Click the icon to view the options.) Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements Ralling Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 8%. Ralling is subject to a 40% tax rate on all income, including capital gains. Net present value. Option 3 Ralling Company should choose for the Benton plant. Requirement 2. What nonfinancial factors should Ralling consider before making its choice? For each option, select one or more nonfinancial factors that Ralling should consider. (Select all that apply. If a box is not used in the table, leave the box empty.) Option 1 Option 2 Option 3 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Requirement 2. What nonfinancial factors should Ralling consider before making its choice? For each option, select one or more nonfinancial factors that Ralling should consider. (Select all that apply. If a box is not used in the Option 1 Option 2 Failure to recognize savings from depreciation Gives Ralling immediate liquidity Gives Ralling a closer relationship with the supplier Has Ralling entering a new line of business If successful, option could be expanded to cover other accessories Limits Ralling's flexibility if the supplier's quality is not comparable to competitors Limits Ralling's liquidity due to working capital requirements Potential risks of failing to meet predicted sales Option 3 Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later MacBook Pro CSC 30 F F3 F4 they occur at the e 40% tax rate on all for the Bent s should Ralling con inancial factors that pty) Option 1: The plant, which has been fully depreciated for tax purposes, can be sold immediately for $720,000. Option 2: The plant can be leased to the Timber Corporation, one of Ralling's suppliers, for 4 years. Under the lease terms, Timber would pay Ralling $174,000 rent per year (payable at year-end) and would grant Ralling a $62,000 annual discount from the normal price of lumber purchased by Ralling, (Assume that the discount is received at year-end for each of the 4 years.) Timber would bear all of the plant's ownership costs. Ralling expects to sell this plant for $300,000 at the end of the 4-year lease. Option 3: The plant could be used for 4 years to make porch swings as an accessory to be sold with a portable building. Fixed overhead costs (a cash outflow) before any equipment upgrades are estimated to be $27,000 annually for the 4-year period. The swings are expected to sell for $50 each. Variable cost per unit is expected to be $26. The following production and sales of swings are expected: 2018, 13,000 units: 2019, 18,000 units; 2020, 16,000 units: 2021, 9,000 units. In order to manufacture the swings, some of the plant equipment would need to be upgraded at an immediate cost of $170,000. The equipment would be depreciated using the straight-line depreciation method and zero terminal disposal value over the 4 years it would be in use. Because of the equipment upgrades, Ralling could sell the plant for $400,000 at the end of 4 years. No change in working capital would be required Print Done mber in the input field MacBook Pro
