2017 2016

Property and equipment 4,281,000,000 4,599,000,000 The firm is looking to expand its operations by 10% of the firms net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firms balance sheet.) The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipments cost. The annual EBIT for this new project will be 18% of the projects cost. The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project. 1. Calculate the amount of property plant and equipment number and the annual depreciation. Please show work 2. Calculate the EBIT to free cash flow for the 12 years of the project