Answer All with expalnations please:

1) Sales for year 2 of the new project are expected to increase by 10%. Current assets are expected to increase by 17% for every dollar increase in sales while accounts payable are expected to increase by 6%. For year 2 the change in cash flows due to working capital will be:

2) Peter's Boats has sales of $760,000 and a profit margin of 5%. The annual depreciaon expense is $80,000. What is the amount of the operang cash flow if the company has no long-term debt?

3) A proposed investment has a cost of $250. It will have a life of 4 years. The cost will be depreciated straight-line to a zero salvage value and will be worth $50 at that me. Cash sales will be $230 per year and cash costs will run $120 per year. The firm will also need to invest $70 in net working capital at year 0. The appropriate discount rate is 8% (use for all flows), and the corporate tax rate is 40%. What are the cash flows in years 1, 2, 3, and 4?

4) What is the inflaon rate given a nominal interest rate is 13% when the real rate is 6%?

5) Jackson & Sons uses packing machines to prepare its products for shipping. One machine costs $136,000 and lasts about 4 years before it needs replacing. The operang cost per machine is $6,000 a year. What is the equivalent annual cost of one packing machine if the required rate of return is 12%? (Round your answer to whole dollars.)

6) A project will produce an operang cash flow of $7,300 a year for three years. The inial cash investment in the project will be $11,600. The net aer-tax salvage value is esmated at $3,500 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 11%?

7) Bruno's, Inc. is analyzing two machines to determine which one it should purchase. The company requires a 14% rate of return and uses straight-line depreciaon to a zero book value. Machine A has a cost of $290,000, annual operang costs of $8,000, and a 3-year life. Machine B costs $180,000, has annual operang costs of $12,000, and has a 2-year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should Bruno's purchase and why? (Round your answer to whole dollars.)