Prompt: you are the ceo of winton enterprises, a large specialty manufacturer of automobile parts. you have a $200 million business providing car parts to a number of auto manufacturers, both domestic and international. many years ago, your company offered “lifetime health benefits” to all retirees. foreign competition has forced you to move some of the manufacturing to china. this off shoring of work has reduced your expenses tremendously. however, the cost of medical insurance and benefits for retirees has risen dramatically. the program for retirees is in serious jeopardy. recently, new hires are told to invest their benefits money as they see fit; they are not offered lifetime health benefits. now you must inform the company’s retirees that they will have to pay half of the cost of their medical benefits beginning january 21 of next year. write a one-page formal business letterto simon d’azure, a retired worker, that he will have to pay half the costs of his health care premiums directly. you will provide a telephone number so that he can have his questions answered by the insurer. create any details needed for a complete letter.

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.)