Hello,

Can someone please answer the question attached.

Question 24 Use this information for the next 3 questions: Lugar Industries is considering an investment in a new machine with the following information: Machine cost 225,000 Setup cost 25,000 Salvage value 50,000 Life 5 years Net operating expense savings: End of Year 1 $ 50,000 End of Year 2 $ 90,000 End of Year 3 $110,000 End of Year 4 $120,000 End of Year 5 $120,000 WACC 10% Tax rate 40% Assumed value of the machine at end of 5 years is $50,000 If Lugar buys the machine, calculate the following answers. Remember to include the impact of depreciation, taxes, and salvage value. Calculate the NPV. You need to take into account depreciation, taxes and salvage value into account when calculating this problem. Round you answer to the nearest whole number. Do not use $, commas, or decimal points) Question 25 Based on the above information, calculate the IRR. Round you answer to the nearest two decimal places. Do not use %) (For example, 34.4550% would be entered as 34.46. Question 26 Based on your calculations, should Lugar buy the machine? Question 27 Lucinda Diamanti is 10 years old today (August 15th) and while all she's interested in is her new bike, her parents Mr. & Mrs. Diamanti are considering how they will pay for her college education beginning in 8 years. They decide to set up a meeting with their financial adviser Cindy Morgan to discuss an education savings plan. During the meeting, the Diamanti's inform Cindy that they have $8,000 they can use to begin the savings plan, and from what they can determine, Lucinda will require 4 years to complete her undergraduate degree in molecular biology. Cindy consults a reputable college reference to see that tuition costs are currently estimated at $32,000 per year and are expected to grow at 4% each year for the foreseeable future. The Diamanti's are concerned that they won't have enough money and ask Cindy how to make sure they have enough to completely pay for Lucinda's undergraduate education. The Diamanti's inform Cindy that they want to make deposits into the education savings plan on an annual basis until Lucinda's first year in college at which point they will stop making contributions. Cindy tells them they can earn 8% annual interest on their savings plan. Your job to answer the following two questions (You may assume there are 8 years between today and the beginning of Lucinda's first day in college): Assuming the estimates on tuition costs are correct, how much money needs to be in the account when Lucinda begins college in 8 years to fund 4 years of college? Round your answer to a whole number. (No $ signs, commas, or decimal points) Question 28 How much money do the Diamanti's need to deposit annually in order to reach their goal to fund Lucinda's education fully? Remember that the Diamanti's have $8,000 to invest today. Round your answer to a whole number. (No $ signs, commas, or decimal points) Question 30 Please use the following facts to analyze this nest two questions: Assume you just received a bill for services you and have the following two payment options: Option 1: Pay the entire bill of $600 now Or Option 2: Pay: $130 now And $130 for each of the next 4 months What annual interest rate (APR) are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34. Question 31 What Effective Annual Rate are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34. Question 32 Please use the following facts to analyze the next two questions: Facts and Assumptions: Lease Term in Months 24 Lease Down Payment $ 500.00 Monthly Lease Payments $ 300.00 Sales Tax Rate 8% Lease Buyout at End $ 15,000.00 Title Fee $ 25.00 Car Loan Market Rate 7% Outright Purchase Price Before Tax and Title $ 19,500.00 What is the NPV of the lease? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, -$34,567.50 would be entered as -34568. Question 33 What would it cost you to buy the car today if you were paying cash? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, $34,567.50 would be entered as 34568