The Baldwin Company_Data

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Part 2 Please study the following capital budgeting project and then provide explanations for the questions outlined below:   You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $2.1 million in anticipation of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for $2.3 million on an after-tax basis. In four years, the land could be sold for $2.4 million after taxes. The company also hired a marketing firm to analyze the zither market, at a cost of $125,000. An excerpt of the marketing report is as follows: The zither industry will have a rapid expansion in the next four years. With the brand name recognition that PUTZ brings to bear, we feel that the company will be able to sell 3,600, 4,300, 5,200, and 3,900…

Question 14   You have just completed a $20,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000​, and if you sold it​ today, you would net $115,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $30,000 plus an initial investment of $5,000 in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity? Identify the relevant incremental cash flows​ below:  ​(Select all the choices that​ apply.)     A. Capital expenditure to outfit the space.   B. Initial investment in inventory.   C. Amount you would net after taxes should you sell the space today.   D. Price you paid for the space two years ago.   E. Feasibility study for the new coffee shop. Calculate the initial cash flow​ below:Round to the nearest​ dollar.)   1 (1)   $   2 (2)   $   3 (3)   $   4…

Page 41 of 41 Question 41 (1 point) Listen Cristiano Orlando, president of Better Juice Ltd, is considering the purchase of a machine that will improve the operations of the company. Two machines are available. The CRJ2000 costs $110,000 and will last for 9 years. It will produce positive incremental cash flows of $24,000 per year. The GS180 costs $130,000 and will last for 11 years. It will produce incremental cash flows of $28,000 per year. The equivalent annual series (EAS) of the machine they should choose is $ Assume a discount rate of 6%. 1) 11,516.92 2) 12,165.66 3) 9,297.78 4) 8,651.35 5) 7,827.55 6) None of the answers in this list is within $5 of the correct answer.

Please answer question 4 to 6

Question 13   You have just completed a $24,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $101,000​, and if you sold it​ today, you would net $111,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $28,000 plus an initial investment of $4,900 in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity? Identify the relevant incremental cash flows​ below:  ​(Select all the choices that​ apply.)     A. Price you paid for the space two years ago.   B. Feasibility study for the new coffee shop.   C. Initial investment in inventory.   D. Amount you would net after taxes should you sell the space today.   E. Capital expenditure to outfit the space. Calculate the initial cash flow​ below: (Round to the nearest​ dollar.) 1 (1)   $   2 (2)   $   3 (3)   $   4…

question 11 Linksys is considering the development of a wireless home networking​ appliance, called​ HomeNet, that will provide both the hardware and the software necessary to run an entire home from any Internet connection.​ HomeNet's lab will be housed in warehouse space that the company could have otherwise rented out for $184,000per year during years 1 through 4. The tax rate for Linksys is 20%.How does this opportunity cost affect​ HomeNet's incremental​ earnings? HomeNet will experience in____________ incremental earnings of $________ per year for the 4 years.  ​ (Select increase or decrease and round to the nearest​ dollar.) -  an increase  - a decrease

Question 4   Kokomochi is considering the launch of an advertising campaign for its latest dessert​ product, the Mini Mochi Munch. Kokomochi plans to spend $5.0 million on​ TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $9.0 million this year and $7.0 million next year. In​ addition, the company expects that new consumers who try the Mini Mochi Munch will be more likely to try​ Kokomochi's other products. As a​ result, sales of other products are expected to rise by $2.0 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 35%​, and its gross profit margin averages 25% for all other products. The​ company's marginal corporate tax rate is 21% both this year and next year.   What are the incremental earnings associated with the advertising​ campaign?   Complete the table​ below:  ​(Round to the nearest​ dollar.) Incremental Earnings Forecast Year 1 Year 2 Sales of…

Capital Investment, Discount Rates, Intangible and Indirect Benefits, Time Horizon, Contemporary Manufacturing Environment Mallette Manufacturing, Inc., produces washing machines, dryers, and dishwashers. Because of increasing competition, Mallette is considering investing in an automated manufacturing system. Since competition is most keen for dishwashers, the production process for this line has been selected for initial evaluation. The automated system for the dishwasher line would replace an existing system (purchased one year ago for $6 million). Although the existing system will be fully depreciated in nine years, it is expected to last another 10 years. The automated system would also have a useful life of 10 years. The existing system is capable of producing 100,000 dishwashers per year. Sales and production data using the existing system are provided by the Accounting Department: Sales per year (units) 100,000  Selling price $300  Costs per unit:    Direct materials…

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Question 1 The GFA Company, originally established 16 years ago to make footballs, is now a leading producer of tennis balls, baseballs, footballs, and golf balls. Nine years ago, the company introduced “High Flite,” its first line of high-performance golf balls. GFA management has sought opportunities in whatever businesses seem to have some potential for cash flow. Recently Mr Dawadawa, vice president of the GFA Company, identified another segment of the sports ball market that looked promising and that he felt was not adequately served by larger manufacturers. As a result, the GFA Company investigated the marketing potential of brightly coloured bowling balls. GFA sent a questionnaire to consumers in three markets: Accra, Kumasi, and Koforidua. The results of the three questionnaires were much better than expected and supported the conclusion that the brightly coloured bowling balls could achieve a 10 to 15 percent share of the market. Of course, some people at GFA complained about…

Question 2. Calculate the internal rate of return of an investment manually and with a financial calculator. LI Q.2.1. Kevin has a manufacturing company. He wants to increase the profit by investing in a new machine that has savings as follows: Yr. 1 $105,000 $95,000 $90,000 The new machine costs $250,000. The cost of capital is 15%. Does it make sense to invest in the new machine? Calculate IRR using the excel spreadsheet, and also using your calculator. Yr. 2 Yr. 3

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I could really use some help with this practice problem

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Please Don't use Ai solution

I have been given the wrong answer several times.

Answer

I want to know how to calculate salvage value of the projects in this problem. Tnx