Eddison Electronic Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. The Operations department is thinking about making a capital investment this current year. Prepare a memo to the VP of Accounting at EEC that answers the questions below based on the following criteria:EEC expects to save $500,000 per year for the next 10 years by purchasing the supplier.EEC’s cost of capital is 14%.EEC believes it can purchase the supplier for $2 million.In your memo to the VP of Accounting, answer the following questions:What are the advantageous and disadvantages to each investing method (NPV, IRR, or payback period)?Which of the methods (NPV, IRR, or payback period) should EEC use, and why?Would your answer be the same if EEC’s cost of capital were 25%? Why or why not?Would your answer be the same if EEC did not save $500,000 per year as anticipated?What would be the least amount of savings that would make this investment attractive to EEC?Based on your calculations, should EEC acquire the supplier? Why or why not?400-600 words, APA Format

After two years study at UCW, you finally graduate and start a job as Junior accountant at Bigdream Inc. Your manager is responsible for the nationwide distribution of creator design sets. Because of the new social media influence among current generation, the company has grown rapidly, and the prompt growth forces the management team to improve their efficiency and manage their production effectively.You have just been given responsibility for all planning and budgeting of the entire lighting set division. Today is your first day, you have just given an assignment to prepare master budget for the manager, who needs to present the budget and discuss the financial objectives with the shareholders tomorrow. During your job interview, you clearly stated that you gained managerial accounting knowledge and hand on experience during your MBA study.Your first assignment is to prepare a master budget for the next fiscal year, starting January 1, 2021. Your co-work has left a pile of files on your desk including the past sale records, product information, manufacture schedule and supplier pricing list. Now, you realized that you should have pay more attention during the lecture. Now, you don’t know where to start. Fortunately, you remember that you still kept a copy spreadsheet of the master budget template in your laptop from the accounting course.Note: The company desires a minimum ending cash balance each month on $85,000. The Bigdream products are sold to retailers for $129 each and the sales have been in demand due to the Covid-19. However, the marketing department has been conservative toward the end of the year due market saturation. The marketing department has just sent you their forecasted quarter sales and marketing budget.Quarter2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2Sales in Unit30,00035,00040,000550005000055,000Marketing Expenses$35,000$20,000$20,000$35,000$35,000$25,000Ending finished goods inventories are supposed to be equal to 20% of the next month’s sales in units. Bigdream currently does its own assembly production in house. Each unit consists of 3LED panels and the cost of each is $15. Each unit needs 0.10 labour hour from assemble to finish package. The hourly pay rate to the assembling workers is $15 per hour. The production manager also required desired direct material ending inventory to 30% of the next quarter production.Purchases are paid for in the following manner: 50% in the quarter of the purchase and the remaining 50% paid in the quarter following the purchase. All sales to the distributors are made on credit terms with no discount (for now), and payable within 15 days. The Bigdream has determined that only 50% of sales are collected by the end of the quarter in which the sale occurred. An additional 30% is collected in the quarter following the sale, and the remaining 20% is collected in the second quarter following the sale. Bad debts have been negligible, supporting the credit terms as favorable.Below is a display of the Bigdream division monthly manufacture overhead and selling and administrative expenses:Manufacture OverheadVariable:Indirect labour $5 per labour hourIndirect Materials $2.00 per labour hourFixed:Wages and Salaries$2,000 per monthUtilities $1,500 per monthInsurance $2,000 per monthDepreciation $2,000 per monthSelling and AdministrativeVariable:Sales Commissions $5 per unitFixed (Monthly):Wages and Salaries$22,000Utilities $6,000Insurance $1,200Depreciation $1,500Miscellaneous $3,000Labour, Manufacture Overhead, and Selling and Administrative expenses are all paid during the month, in cash, with the exception of depreciation (of course). Bigdream will make a purchase of a parcel of land during the first quarter of 2021 for $50,000 cash. Bigdream’s balance sheet at the end of the fourth quarter is shown below:AssetsCash $35,000Uncollected Accounts receivable in Q4 this year: $200,000LiabilitiesAccounts payable $85,700An agreement with Bank of the West allows Bigdream to borrow up to a total loan amount of $550,000. The interest rate on these loans is 12% annually (pretty high considering market rates) but the interest is not compounded, meaning this is simple interest only.Required:1) Master Budget2) Cash Budget. Show the cash budget by month and in total.3) Budgeted Income statement