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1. Name of the project. (It can be a new business or within a going concern, the purchase of a machine, the purchase of transportation,
1. Name of the project. (It can be a new business or within a going concern, the purchase of a machine, the purchase of transportation, growth, a new product, etc.) 2. What does the project consist ? (project duration: 5 years). 3. Specific and clear development of the Net Investment, including installation costs if required, sale of old machinery if it exists, NWC investment and Opportunity Cost if it exists. 4. Annual Sales, Annual Costs of Sales, Annual Fixed Costs. (How they will grow annually, taking inflation into account. Depreciation of fixed assets (straight-linear), useful life. 5. Tax rate. 6. NWC Investment in Years 1 to 5 7. Surrender value of fixed assets 8. How will the project be financed? What percentage of debt and what percentage of equity? Calculate the wacc of the project. Wacc= %D(ki) + %C(ka) 9. Calculate NPV, IRR, PI and PAYBACK. 10. Interpret each of the indicators and make the decision whether the project is viable or not. It doesn't necessarily have to be viable.
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