ࡱ>  @ 0\bjbjVV r<r<<'4:(:(:(h((E***"***.... DDDDDDD$FRI*E90-.00E** TE1110(8**D10D111** _Zeu:(0@1i=jE0E1@J-1|@J11@Jm2 /Za/@1/4////EE#&1&Solutions Guide: Please reword the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as your own. It has been 2 months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been pleased with your work, he is still a bit hesitant about unleashing you without supervision. Your next assignment involves both the calculation of the cash flows associated with a new investment under consideration and the evaluation of several mutually exclusive projects. Given your lack of tenure and Caledonia, you have been asked not only to provide a recommendation but also to respond to a number of questions aimed at judging your understanding of the capital-budgeting process. The memorandum you received outlining your assignment follows: To: The Assistant Financial Analyst From: Mr. V. Morrison, CEO, Caledonia Products Re: Cash Flow Analysis and Capital Rationing We are considering the introduction of a new product. Currently we are in the 34 percent marginal tax bracket with a 15 percent required rate of return or cost of capital. This project is expected to last 5 years and then, because this is somewhat of a fad product, be terminated. The following information describes the new project: Cost of new plant and equipment: $7,900,000 Shipping and installation costs: $100,000 Unit Sales: Year 1: Units sold: 70,000 Year 2: Units sold: 120,000 Year 3: Units sold: 140,000 Year 4: Units sold 80,000 Year 5: Units sold 60,000 Sales price per unit: $300/unit in years 1 through 4, $260/unit in year 5 Variable Cost per unit: $180/unit Annual Fixed Costs: $200,000 Working capital requirements: There will be an initial working-capital requirement of $100,000 just to get production started. For each year, the total investment in new working capital will be equal to 10 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5. The depreciation method: Use the simplified straight-line method over 5 years. Assume that the plant and equipment will have no salvage value after 5 years. A.) Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows, incremental profits, total free cash flows, or total profits? B.) How does depreciation affect free cash flows or total profits? C.) How do sunk costs affect the determination of cash flows? D.) What is the projects initial outlay? E.) What are the differential cash flows over the projects life? F.) What is the terminal cash flow? G.) Draw a cash flow diagram for this project H.) What is its net present value? I.) What is its internal rate of return? J.) Should the project be accepted? Why or why not? K.) In capital budgeting, risk can be measured from three perspectives. What are those three measures of a projects risk? L.) According to CAPM, which measurement of a projects risk is relevant? What complications does reality introduce into the CAPM view of risk, and what does that mean for our view of the relevant measure of a projects risk? M.) Explain how simulation works. What is the value in using a simulation approach? N.) What is sensitivity analysis and what is its purpose? Please provide answers in excel showing the work for each answer. a. We focus on free cash flows rather than accounting profits because these are the flows that the firm receives and can reinvest. Only by examining cash flows are we able to correctly analyze the timing of the benefit or cost. Also, we are only interested in these cash flows on an after-tax basis as only those flows are available to the shareholder. In addition, it is only the incremental cash flows that interest us, because, looking at the project from the point of the company as a whole, the incremental cash flows are the marginal benefits from the project and, as such, are the increased value to the firm from accepting the project. b. Although depreciation is not a cash flow item, it does affect the level of the differential cash flows over the project's life because of its effect on taxes. Depreciation is an expense item and, the more depreciation incurred, the larger are expenses. Thus, accounting profits become lower and in turn, so do taxes which are a cash flow item. c. When evaluating a capital budgeting proposal, sunk costs are ignored. We are interested in only the incremental after-tax cash flows, or free cash flows, to the company as a whole. Regardless of the decision made on the investment at hand, the sunk costs will have already occurred, which means these are not incremental cash flows. Hence, they are irrelevant. Parts d, e, & f. Section I. Calculate the change in EBIT, Taxes, and Depreciation (this become an input in the calculation of Operating Cash Flow in Section II). Year012345Units Sold70,000120,000140,00080,00060,000Sale Price$300 $300 $300 $300 $260 Sales Revenue$21,000,000 $36,000,000 $42,000,000 $24,000,000 $15,600,000 Less: Variable Costs12,600,00021,600,00025,200,00014,400,00010,800,000Less: Fixed Costs$200,000 $200,000 $200,000 $200,000 $200,000 Equals: EBDIT$8,200,000 $14,200,000 $16,600,000 $9,400,000 $4,600,000 Less: Depreciation$1,600,000 $1,600,0000 $1,600,0000 $1,600,0000 $1,600,0000 Equals: EBIT$6,600,000 $12,600,000 $15,000,000 $7,800,000 $3,000,000 Taxes (@34%)$2,244,000 $4,284,000 $5,100,000 $2,652,000 $1,020,000  Section II. Calculate Operating Cash Flow (this becomes an input in the calculation of Free Cash Flow in Section IV). Operating Cash Flow:EBIT$6,600,000 $12,600,000 $15,000,000 $7,800,000 $3,000,000 Minus: Taxes$2,244,000 $4,284,000 $5,100,000 $2,652,000 $1,020,000 Plus: Depreciation$1,600,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 Equals: Operating Cash Flow$5,956,000 $9,916,000 $11,500,000 $6,748,000 $3,580,000  Section III. Calculate the Net Working Capital (This becomes an input in the calculation of Free Cash Flows in Section IV). Change In Net Working Capital:Revenue: $21,000,000$36,000,000$42,000,000$24,000,000$15,600,000Initial Working Capital Requirement$100,000Net Working Capital Needs:$2,100,000$3,600,000$4,200,000$2,400,000$1,560,000Liquidation of Working Capital$1,560,000Change in Working Capital:$100,000$2,000,000$1,500,000$600,000($1,800,000)($2,400,000) Section IV. Calculate Free Cash Flow (using information calculated in Sections II and III, in addition to the Change in Capital Spending). Free Cash Flow:Operating Cash Flow$5,956,000 $9,916,000 $11,500,000 $6,748,000 $3,580,000 Minus: Change in Net Working Capital $100,000 $2,000,000 $1,500,000 $600,000 ($1,800,000)($2,400,000)Minus: Change in Capital Spending$8,000,000 0$0 000Free Cash Flow:($8,100,000)$3,956,000 $8,416,000 $10,900,000 $8,548,000 $5,980,000 NPV =$16,731,096 IRR =77% g. Cash flow diagram  $3,956,000 $8,416,000 $10,900,000 $8,548,000 $5,980,400  ($8,100,000) h. NPV = $16,731,096 i. IRR = 77% j. Yes. This project should be accepted because the NPV e" 0. and the IRR e" required rate of return. k. First, there is the total project risk also called project standing alone risk, which is a project s risk ignoring the fact that much of this risk will be diversified away as the project is combined with the firms other projects and assets. Second, we have the projects contribution to firm risk, which is the amount of risk that the project contributes to the firm as a whole; this measure considers the fact that some of the projects risk will be diversified away as the project is combined with the firms other projects and assets, but ignores the effects of diversification of the firms shareholders. Finally, there is systematic risk, which is the risk of the project from the viewpoint of a well-diversified shareholder; this measure considers the fact that some of a projects risk will be diversified away as the project is combined with the firms other projects, and, in addition, some of the remaining risk will be diversified away by the shareholders as they combine this stock with other stocks in their portfolio. l. According to the CAPM, systematic risk is the only relevant risk for capital-budgeting purposes; however, reality complicates this somewhat. In many instances, a firm will have undiversified shareholders; for them, the relevant measure of risk is the projects contribution to firm risk. The possibility of bankruptcy also affects our view of what measure of risk is relevant. Because the projects contribution to firm risk can affect the possibility of bankruptcy, this may be an appropriate measure of risk since there are costs associated with bankruptcy. m. The idea behind simulation is to imitate the performance of the project being evaluated. This is done by randomly selecting observations from each of the distributions that affect the outcome of the project, combining each of those observations and determining the final outcome of the project, continuing with this process until a representative record of the projects probable outcome is assembled. In effect, the output from a simulation is a probability distribution of net present values or internal rates of return for the project. The decision maker then bases his decision on the full range of possible outcomes.  !)pI ""##$8$B$H$b$t$$$$$J%N%&Ǽ~s~~ccjhXCJUmHnHuhX5CJ\aJhXCJaJhX5>*CJ\aJhX>*CJaJhXCJ aJhXCJaJhX5CJ\aJ hXCJhX5CJ\aJhX hXhX hXh/he'he'0J5B*CJOJQJ\aJphhe'he'5B*\ph%A  $$$If^$a$gd&z!$$If^a$gd&z!$$If]^a$gd&z! w3^gdX x^gdX$x1$^a$gdX$0x1$^`0a$gdXgdXgde'@Y[$$If^a$gd&z! $$Ifa$gd&z!$ $Ifa$gd&z!.$$If]^a$gd&z!kd$$Ifl֞4d^ 'l-#4d 0TfT0\1 4 la<$ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z!.$$If]^a$gd&z!kd$$Ifl֞4dg 'c-,4d 0TTT0\14 la< $ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z! !".$$If]^a$gd&z!kd$$Ifl֞4dg 'c-,4d 0TTT0\14 la<"#$%&'($ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z!()7.$$If]^a$gd&z!kd$$Ifl֞4dg 'c-,4d 0TTT0\14 la<78ER_ly$ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z!yz.$$If]^a$gd&z!kd$$Ifl֞4dg 'c-,4d 0TTT0\14 la<$ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z!.$$If]^a$gd&z!kd$$Ifl֞4dg 'c-,4d 0TTT0\14 la< $ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z! .$$If]^a$gd&z!kd$$Ifl֞4dg 'c-,4d 0TTT0\14 la<)6CO[$ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z![\o.$$If]^a$gd&z!kd{$$Ifl֞4dg 'c-,4d 0TTT0\14 la<op|$ $$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z!.$$If]^a$gd&z!kdd$$Ifl֞4dg 'c-,4d 0TTT0\14 la<$ \$$If]^$a$gd&z!$ \$$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z! .$$If]^a$gd&z!kdM$$Ifl֞4dg 'c-,4d 0TTT0\14 la<  $0<H$ \$$If]^$a$gd&z!$ \$$If]^$a$gd&z!$$$If]^$a$gd&z! $If^gd&z!HIJ.  -w3^gdXkd6 $$Ifl֞4dg 'c-,4d 0TTT0\14 la< $If]gd&z! M$If]Mgd&z! c$If]cgd&z!$c$If]ca$gd&z! $If^gd&z! $Ifgd&z!.% $Ifgd&z!kd $$Ifl֞4Rg 'c-4d TTT0J14 la< $$If]a$gd&z!$M$If]Ma$gd&z!$$If]a$gd&z!$Z$If]^Za$gd&z! $If^gd&z! !..% $Ifgd&z!kd $$Ifl֞4Rg 'c-4d TTT0J14 la<./;GS_k$$If]a$gd&z!$M$If]Ma$gd&z!$$If]a$gd&z!$Z$If]^Za$gd&z! $If^gd&z!kl.% $Ifgd&z!kd $$Ifl֞4Rg 'c-4d TTT0J14 la<$$If]a$gd&z!$M$If]Ma$gd&z!$$If]a$gd&z!$Z$If]^Za$gd&z! $If^gd&z!.% $Ifgd&z!kd $$Ifl֞4Rg 'c-4d TTT0J14 la<  $$If]a$gd&z!$M$If]Ma$gd&z!$$If]a$gd&z!$Z$If]^Za$gd&z! $If^gd&z!   .  t : Ks &-w3^gdXkd $$Ifl֞4Rg 'c-4d TTT0J14 la< Hkd$$Ifl4F'l-4H$T081    4 la<f4 $If^gd&z! $Ifgd&z!  t : Ks &-w3^gdX $$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z! #!.% $Ifgd&z!kd_$$Ifl֞4Rg 'c-3d T]K081 4 la<#!,!-!.!/!0!1!$$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z!1!2!M!.% $Ifgd&z!kdd$$Ifl֞4Rg 'c-3d T]K081 4 la<M!N!Y!d!o!z!!$$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z!!!!.% $Ifgd&z!kdi$$Ifl֞4Rg 'c-3d T]K081 4 la<!!!!!!!$$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z!!!!.% $Ifgd&z!kdn$$Ifl֞4Rg 'c-3d T]K081 4 la<!!!!!""$$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z!""".  t : Ks &-w3^gdXkds$$Ifl֞4Rg 'c-3d T]K081 4 la<"""""""""$$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z! $If^gd&z! w3^gdX""".! $If^gd&z!kdx$$Ifl֞4Rg 'c-4v TTT0J14 la*"""""" #$$If]a$gd&z!$$If]a$gd&z! # #1#.! $If^gd&z!kda$$Ifl֞4Rg 'c-4v TTT0J14 la*1#;#G#S#]#j#w#$$If]a$gd&z!$$If]a$gd&z!w#x##.! $If^gd&z!kdJ$$Ifl֞4Rg 'c-4v TTT0J14 la*#######$$If]a$gd&z!$$If]a$gd&z!###.! $If^gd&z!kd3$$Ifl֞4Rg 'c-4v TTT0J14 la*#####$$$$If]a$gd&z!$$If]a$gd&z!$$$.! $If^gd&z!kd$$Ifl֞4Rg 'c-4v TTT0J14 la*$"$&$*$.$2$6$$$If]a$gd&z!$$If]a$gd&z!6$8$D$.! $If^gd&z!kd$$Ifl֞4Rg 'c-4v TTT0J14 la*D$H$b$f$j$n$r$$$If]a$gd&z!$$If]a$gd&z!$$If]a$gd&z!r$t$$.! $If^gd&z!kd$$Ifl֞4Rg 'c-4v TTT0J14 la*$$$$$$$$$If]a$gd&z!$$If]a$gd&z!$$$. Tp0x1$^`0gdXkd$$Ifl֞4Rg 'c-4v TTT0J14 la*$$$H%J%P%R%T%p%r%%%&P+-/$0x1$^`0a$gdX Tp0x1$]^`0gdX h1$gdX @ 1$gdX Tp01$^`0gdX Tp0x1$^`0gdX&&&&'V(o())O+P+--//<?@AGHIKLRSTUVXYZ[\ҽȹhe'he'0JmHnHuh&z! h&z!0Jjh&z!0JU hXhXhX5CJ\aJU hXaJhX hX6!n. Sensitivity analysis involves determining how the distribution of possible net present values or internal rates of return for a particular project is affected by a change in one particular input variable. This is done by changing the value of one input variable while holding all other input variables constant. PAGE  PAGE 6 /<=>?@IJKVWXYZ[\&`#$gdX $x1$a$gdXxgdX4 0PP&P0p0= /!"#$x%.PP&P0p/ =!"x#$% 1h/ =!"#$%$$If<!vh5d 5055T5f5T5#vd #v0#v#vT#vf#vT#v:V l0\1 5d 5055T5f5T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 5055T5T5T5#vd #v0#v#vT#v:V l0\15d 5055T54a<$$If<!vh5d 555T5T5T5#vd #v#v#vT#v:V l0J15d 555T54a<$$If<!vh5d 555T5T5T5#vd #v#v#vT#v:V l0J15d 555T54a<$$If<!vh5d 555T5T5T5#vd #v#v#vT#v:V l0J15d 555T54a<$$If<!vh5d 555T5T5T5#vd #v#v#vT#v:V l0J15d 555T54a<$$If<!vh5d 555T5T5T5#vd #v#v#vT#v:V l0J15d 555T54a<$$If<!vh5H$5T5#vH$#vT#v:V l40815H$5T54a<f4$$If<!vh5d 555T5]5K5#vd #v#v#vT#v]#vK#v:V l081 5d 555T5]5K54a<$$If<!vh5d 555T5]5K5#vd #v#v#vT#v]#vK#v:V l081 5d 555T5]5K54a<$$If<!vh5d 555T5]5K5#vd #v#v#vT#v]#vK#v:V l081 5d 555T5]5K54a<$$If<!vh5d 555T5]5K5#vd #v#v#vT#v]#vK#v:V l081 5d 555T5]5K54a<$$If<!vh5d 555T5]5K5#vd #v#v#vT#v]#vK#v:V l081 5d 555T5]5K54a<$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*$$If*!vh5v 555T5T5T5#vv #v#v#vT#v:V l0J15v 555T54a*D@D NormalCJ_HaJmH nHsH tHDA@D Default Paragraph FontRi@R  Table Normal4 l4a (k(No List<O< X Normal (Web)4dP.)@. X Page Number< @< XFooter  !PJtH fS@"f XBody Text Indent 3$01$^`0a$ PJaJtH Bo1B e'text15CJOJQJ\aJo(phX'P;'X'6f A   !"#$%&'()78ER_lyz )6CO[\op|  $0<HIJ !./;GS_kl #,-./012MNYdoz  1;GS]jwx "$13579:@DFHJLNOPefBP!#%8'9':';'<'E'F'G'R'S'T'U'V'Y'00x000000x00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00x0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000x0x0x0x0x0x000x0x00x00x0 0 0 l{000l{0 0 Wl{0 0l{0 0@0@0@000@J@0l;00 A P!#%8';'Y'n;00n;00n{00xn;00$on;00n;000n;00$xn;0n;0 0 0 08  &\W "(7y [o H .k  #!1!M!!!!!"""" #1#w####$$6$D$r$$$$/\ !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVY[ ! !8  @ `(  HB  C DHB  C DHB  C DHB  C DHB  C DHB  C DHB  C DB S  ?fghijX'8!8!0t0tt t t0t  0tLLtL"t OLE_LINK5 OLE_LINK6Y'Y'[:,5[:4[:4[:,4[:l5[:5G!kY'P$nY'8*urn:schemas-microsoft-com:office:smarttagsCity9*urn:schemas-microsoft-com:office:smarttagsplace?*urn:schemas-microsoft-com:office:smarttags stockticker <'T'U'Y'} <'T'U'Y'333v  J 1x<'T'U'Y'<'T'U'Y' , +kqV h>Cd ^L^LE8+qV /k7/=/=,h>C/k7 +kd .AQtz1-3Q9@Ixn!Mp@u( )B\@R^f~3Dj ze k \ , / N m < R jn j2 ~ (gXeu0FVJR@U_ T!=3*fZj2~_`c:f6 3';uDr.Q/{W?Irxm1ot?jl&@Tpb+>K Li: ho~+&?U{y !!Tr!&z!3"`"_##$$5$v$<%ZI%9 &?&[W&??'t'l#(Sr())4)9*w?*+B+L+,7,!^,'o,---&%.oo.\ /b/b/<0 \0:\0qK1mO1 2Rb23s3|3h44^14c4f.57E5b5!6X~>x-?0?8?J?R?*Y?@`E@H@9ATBBBs~BCWCkyC47DHD\D>!Ev=E #FA#F=FOJF?tFvFG/G iGcH$H:H IhI(JIJ.PJhJ KcuR SUSAS WS#ySTV;#Vy4VtVkW"Y2Y Z(Z=ZOZBbZeZGjZ; [N['\8\[\]_]$_+_8_c_k_yz_`~` 5aTaCbIbgb/hblb pbH8cdCd^dm2eYePf g g}Ygggh?lhMi0Qiei/j]mj ko_lc n nqnxno\o1pLpbpM{ppQqWq/rLPr;stEt}t uWv/xw yDz"{|5|}N}~~~~~Y~8Jy9G8LTt.|P%~Z wJVz"YK'e'[c}2IT|4*4nYvZ_j9L=Ke8i,.j5R*:?}OYaNA3r: K(e#<i? >B|\H )CL:WSEl :0MASM0%23'N;fiFBWkB7c\z;W6zVh_g=qrESgmt7I8~Jz sSD&G >V5xs.g$*N3Cj6?T_lmO#<K/8!zB-a&<|JE2Z2aJJ'`:u&|2h!O|ul$4Y m5 y-;jEB;@iK[2^bVMM{Zl^uUZ c@*cN+i2kk#1(s1 4uV:z/QvnW&&#:??.`E]KPd2N DQ6=&/IP0*]^dFb EiUs b<Dgj5QRr5KNMQ}|2BKSVaHdi})c3IRI^03o;CG r]e^!lH=GS[h]VN;h1))+ x ; mM#,0:WX_a.(<!!A jkQHole-@09:RL\4F-b#{} !"#$%&'()78ER_lyz )6CO[\op|  $0<HI !./;GS_kl #,-./012MNYdoz  1;GS]jwx "$13579:@DFHJLNOY'@n 4%X'P@P$PP@P`@UnknownG:Ax Times New Roman5Symbol3& :Cx Arial;(SimSun[SO7& [ @Verdana"qhFFa!Ga!G!24('(' 3Q H)?N[fIt has been 2 months since you took a position as an assistant financial analyst at Caledonia Products BusinessTutor BusinessTutorOh+'0,8DT lx   hIt has been 2 months since you took a position as an assistant financial analyst at Caledonia ProductsBusinessTutorNormalBusinessTutor2Microsoft Word 10.0@0@~$cu@:Ieua!՜.+,0\ hp  ;Hewlett-PackardG(' gIt has been 2 months since you took a position as an assistant financial analyst at Caledonia Products Title  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ\]^_`abcdefghjklmnopqrstuvwxyz{|}~Root Entry FdaZeuData [1Tablei@JWordDocumentSummaryInformation(DocumentSummaryInformation8CompObjj  FMicrosoft Word Document MSWordDocWord.Document.89q