Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

#16 A firm has projected the following financials for a possible project: unanswered YEAR 0 1 2 3 5 not submitted Sales 129,734.00 129,734.00 129.734.00

image text in transcribed

#16 A firm has projected the following financials for a possible project: unanswered YEAR 0 1 2 3 5 not submitted Sales 129,734.00 129,734.00 129.734.00 129.734.00 129,734.00 Attempts Remaining: Infinity Cost of Goods 67,428.00 67,428.00 67,428.00 67,428.00 67,428.00 S&A 30,000.00 30,000.00 30,000.00 30.000.00 30,000.00 Depreciation 20,271.40 20,271.40 20,271,40 20,271.40 20,271.40 Investment in NWC 1,102.00 599.00 599.00 599.00 599.00 599.00 Investment in Gross PPE 101,357.00 The firm has a capital structure of 42.00% debt and 58.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 14.00%. The tax rate facing the firm is 37.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the cash flow for year 1? Submit Answer format: Currency: Round to: 2 decimal places. #17 A firm has projected the following financials for a possible project: unanswered YEAR 0 1 2 2 3 4 5 not_submitted Attempts Remaining: Infinity Sales 129,734.00 129,734.00 129,734.00 129,734.00 129.734.00 Cost of Goods 67,428.00 67,428.00 67,428.00 67,428.00 67,428.00 S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation 20,271.40 20,271.40 20,271.40 20,271.40 20,271.40 Investment in NWC 1,102.00 599.00 599.00 599.00 599.00 599.00 Investment in Gross PPE 101.357.00 The firm has a capital structure of 42.00% debt and 58.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 14.00%. The tax rate facing the firm is 37.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the NPV of the project? (Hint: Be careful about rounding the WACC here!) (! Submit Answer format: Currency: Round to: 2 decimal places. #16 A firm has projected the following financials for a possible project: unanswered YEAR 0 1 2 3 5 not submitted Sales 129,734.00 129,734.00 129.734.00 129.734.00 129,734.00 Attempts Remaining: Infinity Cost of Goods 67,428.00 67,428.00 67,428.00 67,428.00 67,428.00 S&A 30,000.00 30,000.00 30,000.00 30.000.00 30,000.00 Depreciation 20,271.40 20,271.40 20,271,40 20,271.40 20,271.40 Investment in NWC 1,102.00 599.00 599.00 599.00 599.00 599.00 Investment in Gross PPE 101,357.00 The firm has a capital structure of 42.00% debt and 58.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 14.00%. The tax rate facing the firm is 37.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the cash flow for year 1? Submit Answer format: Currency: Round to: 2 decimal places. #17 A firm has projected the following financials for a possible project: unanswered YEAR 0 1 2 2 3 4 5 not_submitted Attempts Remaining: Infinity Sales 129,734.00 129,734.00 129,734.00 129,734.00 129.734.00 Cost of Goods 67,428.00 67,428.00 67,428.00 67,428.00 67,428.00 S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation 20,271.40 20,271.40 20,271.40 20,271.40 20,271.40 Investment in NWC 1,102.00 599.00 599.00 599.00 599.00 599.00 Investment in Gross PPE 101.357.00 The firm has a capital structure of 42.00% debt and 58.00% equity. The cost of debt is 9.00%, while the cost of equity is estimated at 14.00%. The tax rate facing the firm is 37.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the NPV of the project? (Hint: Be careful about rounding the WACC here!) (! Submit Answer format: Currency: Round to: 2 decimal places

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

Making Money With Bitcoin Tips On How To Keep Your Bitcoins

Authors: Pilar Hertlein

1st Edition

979-8354173112

More Books

Students also viewed these Finance questions