Jawaban:

1. a. The net cost of a spectrometer is the initial investment required to purchase and modify the equipment, plus the increase in net working capital. The initial investment is $85,000 ($70,000 + $15,000), and the increase in net working capital is $4,000, for a total net cost of $89,000.

b. The net operating cash flow in each year is the savings in operating costs, minus the depreciation expense for the spectrometer. The spectrometer belongs to the 3 year MACRS class, which means it has a depreciation rate of 33.33% per year.

In Year 1, the net operating cash flow would be $16,667 ($25,000 - ($70,000 x 33.33%)).

In Year 2, the net operating cash flow would be $16,667 ($25,000 - ($70,000 x 66.67%)).

In Year 3, the net operating cash flow would be $16,667 ($25,000 - ($70,000 x 100%)).

c. The additional (non-operating) cash flows in Year 3 are the sale of the spectrometer and the change in net working capital. The sale of the spectrometer generates a cash flow of $30,000, and the change in net working capital is a cash outflow of -$4,000, for a total additional cash flow of $26,000 in Year 3.

d. To determine whether the spectrometer should be purchased, we need to calculate the net present value (NPV) of the project. The NPV is the sum of the present values of all the expected cash flows, discounted at the project's capital cost. If the NPV is positive, the project is expected to generate a return greater than the capital cost and should be accepted. If the NPV is negative, the project is expected to generate a return less than the capital cost and should be rejected.

To calculate the NPV, we first need to determine the present value of each cash flow. The present value of a cash flow is the value of the cash flow in today's dollars, taking into account the time value of money.

In Year 0, the present value of the net cost is $89,000.

In Year 1, the present value of the net operating cash flow is $15,735 ($16,667 / (1 + 10%)^1).

In Year 2, the present value of the net operating cash flow is $14,266 ($16,667 / (1 + 10%)^2).

In Year 3, the present value of the net operating cash flow is $12,936 ($16,667 / (1 + 10%)^3), and the present value of the additional cash flows is $23,527 ($26,000 / (1 + 10%)^3).

The NPV of the project is $66,465 ($89,000 + $15,735 + $14,266 + $12,936 + $23,527). Since the NPV is positive, the project is expected to generate a return greater than the capital cost of 10% and should be accepted.

2. a. Bertin's total long-term debt and total liabilities in 2020 can be calculated using the following formula:

Total liabilities = Accounts payable + Long-term debt

Total liabilities in 2020 = $375,000 + Long-term debt

The total assets of Bertin in 2020 were $1.2 million, so the total equity in 2020 was $1.2 million - $375,000 - $425,000 - $295,000 = $200,000.

We know that the total liabilities in 2020 were equal to the total equity, so:

$375,000 + Long-term debt = $200,000

Long-term debt = $200,000 - $375,000 = -$175,000

Since the long-term debt cannot be negative, this means that Bertin did not have any long-term debt in 2020. The total liabilities in 2020 were therefore equal to $375,000, which was the amount of accounts payable.

b. In 2021, Bertin's sales are expected to increase by 25%, or $625,000 ($2,500,000 x 25%), to $3,125,000. The total assets and accounts payable are proportional to sales, so the total assets in 2021 will be $1.5 million ($1,200,000 x 125%), and the accounts payable in 2021 will be $468,750 ($375,000 x 125%).

Bertin's sales profit margin is 6%, so the company is expected to generate a profit of $187,500 ($3,125,000 x 6%) in 2021. 40% of the revenue will be paid as a dividend, or $125,000 ($3,125,000 x 40%), leaving $62,500 in retained earnings.

The company has arranged to sell $75,000 of new common stock in 2021, which will provide additional equity financing. The remaining financing needs will be met by issuing new long-term debt. The financing needs can be calculated using the following formula:

AFN = Total assets - Total liabilities - Equity

AFN = $1,500,000 - $468,750 - ($425,000 + $75,000 + $62,500)

AFN = $1,500,000 - $468,750 - $512,500

AFN = $519,250

To meet the financing needs, Bertin will need to issue $519,250 - $75,000 = $444,250 in new long-term debt.