You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.7 million for this report, and I am not sure their analysis makes sense. Before we spend the $28.3 million on new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates (in millions of dollars): Project Year Earnings Forecast Sales Revenue -Cost of Goods Sold Gross Profit - General, Sales and Administrative Expenses - Depreciation Net Operating Income - Income Tax 2 10 30.000 30.000 30.000 30.000 18.000 12.000 2.264 2.830 18.000 18.000 18.000 12.000 2.264 2.830 6.906 12.000 12.000 2.264 2.264 2.830 6.906 2.830 6.906 6.906 2.417 2.417 2417 2.417 Net Income 4.489 4,489 4.489 4,489 a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? The free cash flow for year O is S million. (Round to three decimal places.)

Tim Johnson is a news reporter and feature writer for The Wall Street Review, an important daily newspaper for financial managers. Tim’s assignment is to develop two feature articles: one on life-cycle costing and one on business analytics, including interviews with chief financial officers and operating managers. Tim has a generous travel budget for research into company history, operations, and market analysis for the firms he selects for the article.  Tim has asked you to recommend industries and firms that would be good candidates for the article. What would you advise? Explain your recommendations.

Suppose you have been hired as a financial consultant to Defense Electronics, Incorporated (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $3.8 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $6.9 million on an aftertax basis. In five years, the aftertax value of the land will be $7.3 million, but the company expects to keep the land for a future project. The company wants to build its new manufacturing plant on this land; the plant and equipment will cost $33.5 million to build. The following market data on DEI’s securities are current:     Debt: 145,000 bonds with a coupon rate of 6.9 percent outstanding, 22…

Required information [The following information applies to the questions displayed below.) Check my work Franklin Training Services (FTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients' offices on the clients' equipment. The only major expense FTS incurs is instructor salaries; it pays instructors $6,000 per course taught. FTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $700 per student Novak estimated that 20 students would attend the course. Base your answers on the preceding information. FTS sells a custom wood plaque to students who complete the training course. Due to the custom nature of these plaques, FTS has to produce them in advance based on the estimated number of students to be enrolled in the course. Any plaques made for students who do not end up completing the course will be discarded. Prior to the first class, FTS pre-ordered 20…