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Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The co land 8 years ago for...

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Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The c land 8 years ago for $5 million in anticipation of using it as a warehouse and distribution site, but the company has these facilities from a competitor instead. If the land were sold today, the company would net $5.8 million. The comp new manufacturing plant on this land; the plant will cost $13.6 million to build, and the site requires $812,000 worth suitable for construction. The proper cash flow amount to use as the initial investment in fixed assets when evalu . (Do not include the dollar sign ($). Enter your answer in dollars, not millions of dollars, e.g., A proposed new investment has projected sales of $351,000. Variable costs are 55 percent of sales, and fixed costs are $85,320; depreciation is $40,500. Prepare a pro forma income statement assuming a tax rate of 30 percent. The projected net income is $ . (Do not include the dollar sign ($). Round your answer to the nearest whole number. (e.g., 32)) Consider the following income statement: Required: (a) Fill in the missing numbers. (Do not include the dollar signs ($). Round your taxes and net income to 2 decim 32.16)) Sales $875,904 Costs 569,856 Depreciation 129,600 EBT $ Taxes (33%) Net income $ (b) Calculate the OCF. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) The OCF is $ (c) What is the depreciation tax shield? (Do not include the dollar sign ($).) The depreciation tax shield $ Consider an asset that costs $369,600 and is depreciated straight-line to zero over its 10-year tax life. The asset is t project; at the end of the project, the asset can be sold for $46,200. If the relevant tax rate is 33 percent, the aftertax c of this asset is $ . (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e
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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1 asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is $1,008,000 in annual sales, with costs of $403,200. If the tax rate is 32 percent and the required return on the project is for this project is $ . (Do not include the dollar sign ($). Negative amount should be indicate Round your answer to 2 decimal places. (e.g., 32.16)) Dog Up! Franks is looking at a new sausage system with an installed cost of $733,200. This cost will be depreciated straight-line to zero over the project's 9-year life, at the end of which the sausage system can be scrapped for $112,800. The sausage system will save the firm $225,600 per year in pretax operating costs, and the system requires an initial investment in net working capital of $52,640. If the tax rate is 30 percent and the discount rate is 11 percent, the NPV of this project is $ . (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
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Finance-8094084.xls

1)
Initial investment
Land cost
Plant cost
Grading cost
Total initial cost
2)
Projected sales
Less Variable costs (55% of sales)
Less Fixed costs
Less Depreciation
Profit before tax
Tax at 30%
NET...

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