The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $30. The unit cost of the giftware is $10 Year 1 2 > Thereafter Unit Sales 24,000 32,000 16,000 7,000 @ It is expected that net working capital will amount to 30% of sales in the following year For example, the store will need an initial (Year 0) investment in working capital of 30 24,000-$30-$216,000 Plant and equipment necessary to establish the giftware business will require an additional investment of $202,000. This investment will be depreciated using MACRS and a 3-year life. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 21% What is the net present value of the project? The discount rate is 12% Use the MACRS depreciation schedule. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net present value

Aylmer-in-You (AIY) Inc. projects unit sales for a new opera tenor emulation implant as follows:   Year Unit Sales 1 101,000 2 115,000 3 125,000 4 145,000 5 90,000     Production of the implants will require $753,000 in net working capital to start and additional net working capital investments each year equal to 15% of the projected sales increase for the following year. (Because sales are expected to fall in Year 5, there is no NWC cash flow occurring for Year 4.) Total fixed costs are $177,000 per year, variable production costs are $309 per unit, and the units are priced at $360 each. The equipment needed to begin production has an installed cost of $10.0 million. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus falls into Class 8 for tax purposes (20%). In five years, this equipment can be sold for about 20% of its acquisition cost. AIY is in the 40% marginal tax bracket and has a required…

(4) Evaluate the ROI.

A firm is considering a new inventory system that will cost $120,000.  The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4.  The firm’s required rate of return is 9%.  What is the payback period of this project?     1.95 years     2.46 years     2.99 years     3.10 years Based on the information from Question 47.  What is the net present value (NPV) of the project?     $28,830.29     $30,929.26     $36,931.43     $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project?     14.03%     17.56%     19.26%     21.78% Based on the information from Question 47, what is the profitability index (PI) of this project?     0.87     1.11     1.31     1.83.

ou are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $ 76,000 immediately. If your cost of capital is 7%.  What is the minimum dollar amount you need to sell the goods for in order for this to be a​ non-negative NPV?       Question content area bottom Part 1 The minimum dollar amount is ​$XXX enter your response here .

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