Red snail satellite company recently created an esop. the company issued 200,000 new shares of stock at $50 per share, which it sold to the esop. the esop borrowed $10 million to purchase the newly issued shares from the company. the financial institution was willing to lend the money to the esop, because red snail satellite company signed a guarantee for the loan. the firm used the money from the esop to repurchase its shares on the open market at $50 per share. which of the following statements describes the net effect of these transactions on red snail satellite company’s balance sheet? the firm’s total shareholders’ equity will increase by $10 million. the amount of the firm’s total liabilities and total shareholders’ equity will remain the same. the firm’s total liabilities will increase by $10 million.

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)