Elmdale enterprises is deciding whether to expand its production facilities. although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars): year 1 year 2 revenues 127.7127.7 158.9158.9 cogs and operating expenses (other than depreciation) 31.931.9 55.155.1 depreciation 26.226.2 30.730.7 increase in net working capital 3.83.8 8.28.2 capital expenditures 27.627.6 35.935.9 marginal corporate tax rate 3535% 3535% a. what are the incremental earnings for this project for years 1 and 2? (note: assume any incremental cost of goods sold is included as part of operating expenses.) b. what are the free cash flows for this project for years 1 and 2?

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?

The undress company produces a dress that women use to quickly and easily change in public. the company is just over a year old and has been successful through a kickstarter campaign. the undress company has identified a customer segment, but if it wants to reach a larger customer segment market outside of the kickstarter family, what question must it answer?

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?