The cost of capital of Coka is 11% and the corporate tax rate is 40%. The machine

Question:

The cost of capital of Coka is 11% and the corporate tax rate is 40%. The machine will be straight- line depreciated over 12 years to its terminal value.

a. What is the minimum number of cans that the company has to sell annually in order to justify self- production of cans? Start by assuming that annual production is 3 million cans, and then use Goal Seek to find a break- even point.

b. Advanced: Use data tables in order to show the NPV and IRR of the project as a function of the number of cans.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Gauri Hendre

I worked as EI educator for Eduphy India YT channel. I gave online tutorials to the students who were living in the villages and wanted to study much more and were preparing for NEET, TET. I gave tutions for topics in Biotechnology. I am currently working as a tutor on course hero for the biochemistry, microbiology, biology, cell biology, genetics subjects. I worked as a project intern in BAIF where did analysis on diseases mainly genetic disorders in the bovine. I worked as a trainee in serum institute of India and Vasantdada sugar institute. I am working as a writer on Quora partner program from 2019. I writing on the topics on social health issues including current COVID-19 pandemic, different concepts in science discipline. I learned foreign languages such as german and french upto A1 level. I attended different conferences in the science discipline and did trainings in cognitive skills and personality development skills from Lila Poonawalla foundation. I have been the member of Lila poonawalla foundation since 2017. Even I acquired the skills like Excel spreadsheet, MS Office, MS Powerpoint and Data entry.

5.00+ 4+ Reviews 10+ Question Solved

Related Book For book-img-for-question