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1 Problem 6 - 2 Calculating Project NPV The Fancy Manufacturing Company is considering a new Investment. Financlal projections for the Investment are tabulated here.
Problem Calculating Project NPV The Fancy Manufacturing Company is considering a new Investment. Financlal projections for the Investment are tabulated here. The corporate tax rate is percent. Assume all sales revenue is recelved in cash, all operating costs and Income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. a Compute the Incremental net Income of the Investment for each year. Do not round Intermedlate calculations and round your answers to the nearest whole number, eg b Compute the Incremental cash flows of the Investment for each year. A negative amount should be Indlcated by a minus sign. Do not round Intermedlate calculations and round your answers to the nearest whole number, eg c Suppose the approprlate discount rate is percent. What is the NPV of the project? Do not round Intermedlate calculations and round your answer to declmal places, eg
Problem Calculating Project NPV
The Fancy Manufacturing Company is considering a new Investment. Financlal
projections for the Investment are tabulated here. The corporate tax rate is percent.
Assume all sales revenue is recelved in cash, all operating costs and Income taxes are
paid in cash, and all cash flows occur at the end of the year. All net working capital is
recovered at the end of the project.
a Compute the Incremental net Income of the Investment for each year. Do not round
Intermedlate calculations and round your answers to the nearest whole number,
eg
b Compute the Incremental cash flows of the Investment for each year. A negative
amount should be Indlcated by a minus sign. Do not round Intermedlate
calculations and round your answers to the nearest whole number, eg
c Suppose the approprlate discount rate is percent. What is the NPV of the project?
Do not round Intermedlate calculations and round your answer to declmal
places, eg
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