Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. TB Incorporated generates sales of $1600, $1200, $1500, $1800 and $2000. Depreciation each year is $700 each year; COGS are $500 each year. If

image text in transcribed
1. TB Incorporated generates sales of $1600, $1200, $1500, $1800 and $2000. Depreciation each year is $700 each year; COGS are $500 each year. If the cost of capital is 12.5%; and taxes are 20% Find the NPV and IRR. 2. Tom Brady is a G.O.A.T. Incorporated generates sales of the following units: 700, 900, 1200, 1100, 1000, 900 each year. The price per unit is $25 in the first 2 years, $20 in the next two and $18 in the remaining years. The VC is $3 per unit in the first 3 years and $2 in the remaining years. The Fixed Costs are $3000 each year. Depreciation is $6000 each year. If taxes are 20% and the cost of capital is 12.5% find the NPV and IRR. 3. ABC Incorporated has invested in a project that costs $25,000. It is a 5 year project and it is depreciated straight line each year. The salvage value is 5% of its costs. The project is expected to sell 500, 450, 600, 750 and 650 units each year at a price of $50 in years 1 - 3 and $75 in the remaining years. The Fixed Costs are $3000 each year and VC are 12% of the sales in years 1 - 2 and 15% of the sales in the remaining years. If taxes are 20% and the cost of capital is 8.75% find the NPV and IRR

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: E. Thomas Garman, Raymond E. Forgue, Jonathan Fox

14th Edition

ISBN: 0357901495, 9780357901496

More Books

Students also viewed these Finance questions

Question

9. Explain the relationship between identity and communication.

Answered: 1 week ago

Question

a. How do you think these stereotypes developed?

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago