Question
A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 Sales 130,722.00130,722.00130,722.00130,722.00130,722.00Cost of Goods 63,491.0063,491.0063,491.0063,491.0063,491.00S&A 30,000.0030,000.0030,000.0030,000.0030,000.00Depreciation 21,847.4021,847.4021,847.4021,847.4021,847.40Investment
A firm has projected the following financials for a possible project:
YEAR012345Sales 130,722.00130,722.00130,722.00130,722.00130,722.00Cost of Goods 63,491.0063,491.0063,491.0063,491.0063,491.00S&A 30,000.0030,000.0030,000.0030,000.0030,000.00Depreciation 21,847.4021,847.4021,847.4021,847.4021,847.40Investment in NWC1,078.00526.00526.00526.00526.00526.00Investment in Gross PPE109,237.00The firm has a capital structure of 45.00% debt and 55.00% equity. The cost of debt is 10.00%, while the cost of equity is estimated at 13.00%. The tax rate facing the firm is 34.00%. (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?
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Complacency And Collusion A Critical Introduction To Business And Financial Journalism
Authors: Keith J. Butterick
1st Edition
074533203X,1849648379
