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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
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
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