Question: Can someone please please help me out with this assignment? I am having a hard time attaching the excel sheet, and the assignment needs to

Can someone please please help me out with this assignment? I am having a hard time attaching the excel sheet, and the assignment needs to be submitted on an excel sheet. i CAN SEND IT TO YOU FROM ld3435503 @ gmail . com (the first letter is an L), this assignment needs to be submitted by tonight. I've attached the assignment questions, and I've tried to attach the excel link, but it may not work. PLEASE PLEASE PLEASE CONTACT THE ABOVE so I can send you the spreadsheet if the link does not work.

Can someone please please help me out with thisCan someone please please help me out with thisCan someone please please help me out with thisCan someone please please help me out with this
Assignment 4 Estimating Cash Flows Instruction: Please submit 't'utll' asst mnent as an attachment tn- midnight on the due date Solve all problems in the Excel file provided. Problem ] Regency Integrated Chips {RIC}. a large Nashvillebased technology company,r is evaluating a new project to manufacture a new chip. The project's estimated economic life is 5 years. RIC 's marketing vicepresident believes that annual sales would be 3D,Il units if the units were priced at $.I}I}I} each. RIC expects no growth in unit sales, and it believes that the unit price will rise by 3 percent each year. The engineering department has reported that the project will require additional manufacturing space, and RIC currently has an option to purchase an existing building1 at a cost of $213 million. which would meet this need. The building would be bought and paid For on December SI of Year I}. and for depreciation purposes1 it would fall into the MACRS 39 year class. The annual depreciation rate for the live years of economic life ol" the project would be: d. The necessary equipment would be purchased, installed, and paid for on December 31 of Year 0. The equipment would fall into the MACRS 5-year class, and it would cost $10 million, including transportation and installation. The annual depreciation rate for the five years of economic life of the project would be: Year 1 Year 2 Year 3 Year 4 Year 5 20% 32% 19% 12% 11% e. At the end of the project, the building is expected to have a market value of $10 million and the equipment is expected to have a market value of $2 million. f. The production department has estimated that variable manufacturing costs would be $4000 per unit, and that fixed overhead costs, excluding depreciation would be $20 million a year. They expect variable costs to rise by 3 percent per year, and fixed costs to rise by 2 percent per year. Depreciation expense would be determined in accordance with MACRS rates. g. RIC must have an amount of NOWC on hand equal to 10 percent of the upcoming year's sales.h. _F____' 1.. __ _______ RIC's marginal tax rate is 25 percent1 its cost of capital is 12 percent, and it assumes that all operating cash ows occur at the end of the year. Evaluate the project using the NPV rule and the IRR rule. Problem 2 You have been asked by the president of the Farr Construction Company to evaluate the proposed acquisition of a new earth mover. The niover's basic price is $22, and it would cost another 5343,4300 to modify it for special use. As sume that the mover falls into the MAC RS 5-year class1 it would be sold after 4 years for $ll,l]l]ll, and it would require an increase in net operating working capital [spare parts inventory} of EIDJJDD. The earth mover would have no effect on revenues, but it is expected to save the [inn 55101311] per year in beforetax operating costs, mainly labor. The rm's marginal federalplusstate tax rate is 25 percent and the project's cost of capital is ID percent. Evaluate the project using the NPV rule and the IRR rule. Problem 3 ABC Inc. wishes to buy new machinery that would cost 5 lti-ti,t]t]t], but it would lead to increased output. higher sales, and higher costs. Moreover, the firm would receive 5 l alter taxes for the old machine. The new machine would result in sales of $12, per year versus old sales of $T,, and the new costs would be S40 versus old costs of $2,. Finally, the old machine was being depreciated at the rate ed" $l, per year, but the netl.r machine would have S3 ed" annual depreciation. The marginal tax rate is 25 percent and WACC is [{l percent. Based on these gures1 and assuming the new.r and old machines both have a life of four years. nd the incremental cash ows

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!