Fill In The Missing Numbers In The Following Income Statement Sales \$ 645,300 Costs 346,800 Depreciation 97,500 2. Cochrane, Inc., Is Considering A New Three-Year Expansion Project That Requires An Initial Fixed Asset Investment Of \$2

Fill in the missing numbers in the following income statement

Sales    \$    645,300
Costs        346,800
Depreciation        97,500
2. Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of \$2,520,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate \$2,290,000 in annual sales, with costs of \$1,280,000. The project requires an initial investment in net working capital of \$164,000, and the fixed asset will have a market value of \$189,000 at the end of the project. Assume that the tax rate is 40 percent and the required return on the project is 7 percent.

Don't use plagiarized sources. Get Your Custom Essay on
Fill In The Missing Numbers In The Following Income Statement Sales \$ 645,300 Costs 346,800 Depreciation 97,500 2. Cochrane, Inc., Is Considering A New Three-Year Expansion Project That Requires An Initial Fixed Asset Investment Of \$2
Just from \$5/Page

Requirement 1:
What are the net cash flows of the project for the following years?
Requirement 2:
What is the NPV of the project?
3. Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid \$139,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of \$594,000 per year. The fixed costs associated with this will be \$198,000 per year, and variable costs will amount to 18 percent of sales. The equipment necessary for production of the Potato Pet will cost \$658,000 and will be depreciated in a straight-line manner for the four years of the product life (as with all fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy’s is in a 40 percent tax bracket and has a required return of 12 percent.

Required:
Calculate the Time 0 cash flow for this project.
Calculate the annual OCF for this project
Calculate the payback period for this project.
Calculate the NPV for this project
Calculate the IRR for this project
4.use the following returns for X and Y.

Returns
________________________________________
Year    X    Y
1            22.8    %                29.4    %
2        –    17.8                –    4.8
3            10.8                    31.4
4            21.6                –    16.6
5            5.8                    35.4
________________________________________

Requirement 1:
Average returns
Requirement 2:
Calculate the variances for X and Y.
Requirement 3:
Calculate the standard deviations for X and Y.
A stock has had the following year-end prices and dividends:

Year    Price    Dividend
1    \$ 64.48        —
2    71.35        \$ 0.63
3    77.15        0.68
4    63.42        0.74
5    73.41        0.83
6    81.25        0.90
________________________________________

5. What are the arithmetic and geometric returns for the stock?

6. Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for \$26,000, and the company expects to sell 1,450 per year. The company currently sells 1,950 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,770 units per year. The old board retails for \$21,900. Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be \$1,400,000 per year, and fixed costs are \$1,300,000 per year.

Required:
If the tax rate is 38 percent, what is the annual OCF for the project?

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We are committed to making our customer experience enjoyable and that we are keen on creating conditions where our customers feel secured and respected in their interactions with us.
With our qualified expert team who are available 24/7, we ensure that all our customer needs and concerns are met..

Money Payback-back guarantee

Our refund policy allows you to get your money back when you are eligible for a refund. In such a case, we guarantee that you will be paid back to your credit card. Another alternative we offer you is saving this money with us as a credit. Instead of processing the money back, keeping it with us would be an easier way to pay for next the orders you place

Zero-plagiarism guarantee

All orders you place on our website are written from scratch. Our expert team ensures that they exercise professionalism, the laid down guidelines and ethical considerations which only allows crediting or acknowledging any information borrowed from scholarly sources by citing. In cases where plagiarism is confirmed, then the costumier to a full refund or a free paper revision depending on the customer’s request..

Free-revision policy

Quality is all our company is about and we make sure we hire the most qualified writers with outstanding academic qualifications in every field. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

We understand that students are not allowed to seek help on their projects, papers and assignments from online writing services. We therefore strive to uphold the confidentiality that every student is entitled to. We will not share your personal information elsewhere. You are further guaranteed the full rights of originality and ownership for your paper once its finished.

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: