Items Year ( s ) Amount 18 % Factor Present Value Cost of machinery Now ($ 700,000 ) 1 ($ 700,000 ) Working capital increase Now ($ 60,000 ) 1 ($ 60,000 ) Annual cash inflows 1 – 10 $ 150,000 4.494 674,100 Overhaul 5 ($ 45,000 ) 0.437 ($ 19,665 ) Salvage value 10 $ 70,000 0.191 13,370 Working capital release 10 $ 60,000 0.191 11,460 Net present value ($ 80,735 ) Required : ( a ) What is the net present value of this investment opportunity ? ( b ) Based on your answer to ( a ) above , should Simpson go ahead with the new conditioning shampoo ? ( Points : 30 ) Question 3.3 . ( TCO A ) The following data ( in thousands of dollars ) have been taken from the accounting records of the Maroon Corporation for the just-completed year . Sales 1,700 Raw materials inventory , beginning 50 Raw materials inventory , ending 25 Purchases of raw materials 210 Direct labor 360 Manufacturing overhead 330 Administrative expenses 400 Selling expenses 200 Work-in-process inventory , beginning 120 Work-in-process inventory , ending 150 Finished goods inventory , beginning 80 Finished goods inventory , ending 120 Use the above data to prepare ( in thousands of dollars ) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year . In addition , what is the impact on the financial statements if the ending finished goods inventory is overstated or understated ? ( Points : 25 ) Question 4.4 . ( TCO F ) Walker Corporation is preparing its cash budget for November . The budgeted beginning cash balance is $ 43,000 . Budgeted cash receipts total $ 117,000 and budgeted cash disbursements total $ 122,000 . The desired ending cash balance is