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0 1 2 3 4 Ultron company has developed a powerful new car. Evaluate the project based on the following information: Economic Life: Initial cost

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0 1 2 3 4 Ultron company has developed a powerful new car. Evaluate the project based on the following information: Economic Life: Initial cost in fixed assets: Annual Depreciation: Salvage value of fixed assets in year 4: NWC requirements p.a: Projected annual unit sales: Unit sales price: Unit variable cost: Fixed cost: Inflation rate for sales price, fixed cost and variable cost: WACC: Corporate Tax: 4 Years 540000000 Rands 20 % of initial cost in fixed assets 20 % of initial cost in fixed assets % of next year's projected sales 2700 units p.a 540000 Rands per unit in year one 162000 Rands per unit in year one 108000000 Rands in year one 6 % p.a 12 % Sales Variable Cost Fixed Cost Depreciation EBIT Tax EAIT Depreciation Net OCF Changes in NWC Initial cost Net Salvage Value Net CF Discounted CF 40 % NPV IRR MIRR Payback Discounted Payback Profitability Index

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