2016 2017 2018 2019 2020 2021 2022 Investment: Capital Outlay 16,000 2,000 0 0 0 0 0 Net Working Capital (10% Sales) 0 400 600 0 0 0 0 Total Investment 16,000 2,400 600 0 0 0 0 Investment Recovery : Equipment Salvage ($1,080) Net Working Capital (full recovery) (1,000) Earnings before Interest and Taxes (EBIT): Sales Revenue 4,000 10,000 10,000 10,000 10,000 10,000 Cost of Goods Sold (75% Sales) 75% (3,000) (7,500) (7,500) (7,500) (7,500) (7,500) SG&A (5% Sales) 5.0% (200) (500) (500) (500) (500) (500) Operating Savings 2,000 3,500 3,500 3,500 3,500 3,500 Depreciation ($18,000/6) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000) Total Costs & Expenses (4,200) (7,500) (7,500) (7,500) (7,500) (7,500) EBIT - Taxes (40%) NOPAT + Depreciation - Investment = Free Cash Flow Present Value of Free Cash Flows Should the company undertake the project? Why or why not?

Which of the following is a disadvantage of equity alliances when compared to non-equity alliances? 1. they are reflective of weaker ties between firms.2. they do not permit the exchange of explicit knowledge.3. they are more likely to bring about lack of trust and commitment.4. they require significantly higher levels of investment.

Alandowner entered into a written agreement with a real estate broker whereby the broker would receive a commission of 10% of the sale price if he procured a "ready, willing, and able buyer" for the landowner's property and if the sale actually proceeded through closing. the broker found a buyer who agreed in writing to buy the property from the landowner for $100,000, the landowner's asking price. the buyer put up $6,000 as a down payment. the agreement between the landowner and the buyer contained a liquidated damages clause providing that, if the buyer defaulted by failing to tender the balance due of $94,000 at the closing date, damages would be 10% of the purchase price. the landowner included that clause because she was counting on using the proceeds of the sale for a business venture that would likely net her at least $10,000. the buyer became seriously ill and defaulted. when he recovered, he demanded that the landowner return his $6,000, and the landowner refused. the broker also demanded the $6,000 from the landowner and was refused. the broker and the buyer filed separate suits against the landowner, with the buyer pleading impossibility of performance. the two cases are consolidated into a single case. how should the court rule as to the disposition of the $6,000?

Sally is buying a home and the closing date is set for april 20th. the annual property taxes are $1,234.00 and have not been paid yet. using actual days, how much will the buyer be credited and the seller be debited