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2 Shultz Business Systems is analyzing an average - risk project, and the following data have been developed. Unit sales will be constant, but the
Shultz Business Systems is analyzing an averagerisk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for years, it will be depreciated on a straightline basis, and there will be no salvage value. This is just one of many projects for the firm, so any losses can be used to offset,gains on other firm projects. What is the project's expected NPV tableWhat is the project's expected NPVProject cost of capital Net investment cost depreciable basis$Units sold,,,Average price per unit, Year Fixed op cost excl. deprec. constant$Variable op costunit Year Annual depreciation rate,,,Expected inflation rate per year,,,Tax rate,,,Year Year Year Sales Variable Cost Fixed Cost Depreciation EBIT Taxes Net Income FCF NPV
Shultz Business Systems is analyzing an averagerisk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for years, it will be depreciated on a straightline basis, and there will be no salvage value. This is just one of many projects for the firm, so any losses can be used to offset,gains on other firm projects. What is the project's expected NPV
tableWhat is the project's expected NPVProject cost of capital Net investment cost depreciable basis$Units sold,,,Average price per unit, Year Fixed op cost excl. deprec. constant$Variable op costunit Year Annual depreciation rate,,,Expected inflation rate per year,,,Tax rate,,,Year Year Year
Sales
Variable Cost
Fixed Cost
Depreciation
EBIT
Taxes
Net Income
FCF
NPV
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