The initial outlay associated with the expansion would be $1,950,000, and the project would generate free cash flows of $450,000 per year for 6 years
5. Enter the adjustments directly on to the spreadsheet. 6. Extend to the adjusted trial balance columns. 7. Extend to the financial statement columns. 8. Prepare the financial statements. 9. Enter the closing entries on to the worksheet. 10. Prepare the post closing trial balance for May.
Make sure you include the following in your final Excel Workbook: 1. The completed Worksheet on the given downloadable spreadsheet.(I can send you this file via email-has all the columns labeled, Just give me your email address) 2. Formal income statement, statement of owner’s equity, and balance sheet. These may be prepared on separate tabs on the Excel Workbook where the “Worksheet” is the first tab. 3. Post Closing Trial Balance for May 31. 4. T- Accounts(If applicable) < /span>
Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The appropriate required rate of return is 9%. Calculate the net present value and the internal rate of return.
A proposed cost-saving device has an installed cost of $730,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $55,000, the marginal tax rate is 35 percent, and the project discount rate is 9 percent. The device has an estimated year 5 salvage value of $80,000. What level of pretax cost savings do we require for this project to be profitable-
When the state-required reading achievements are given in your school, a teacher you know reads difficult items aloud to some of her lowest readers. She defends her actions by saying, ?It?s wrong to make them struggle with material everyone knows they click for more can?t read.? Argue for or against her actions.
1. ?Let?s face it. Our product is no different from that of 20 other competitors. It sells for the same price and for the same terms. We all give the same service. It really doesn?t matter to the buyer which of us gets the order. So the only way we can get an edge is through our aggressive entertainment and gift program. We work hard at making our buyers happy with us. They enjoy doing business with us.? Do you see any ethical problems involved here? What would you do differently, if anything?
2. A manufacturer of small aircraft, designed for executive transportation of large companies, has decided to implement the concept of a selling center. Which people in this company should be on the selling teams? What problems is this firm likely to encounter when it uses team selling? (Hint: Use an Internet search to learn more about these types of firms.)
What possible consequences are there to the company?
3. One manufacturer of dictating machines recruits only experienced people and does not recruit among graduating college students. A competitor recruits extensively among colleges in its search for salespeople. How do you account for the difference in sources used by firms selling essentially the same products? Explain your analysis in detail
4. You must choose between two sales recruits. One has scored very high in terms of the quality of his interview, but not very well on the series of psychological tests to predict qualities the firm thinks are necessary for success. Another person did well on the psychological testing, but not very well in the personal interview. All other things being equal, which one would you hire, and why? What do you think the strengths and weaknesses would be of the one you hired?