Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A project costs $70M. It will provide additional revenue of 20M per year for 30 years while also costing 5M per year to run. It
A project costs $70M. It will provide additional revenue of 20M per year for 30 years while also costing 5M per year to run. It will require an addition to net working capital of 3M for the life of the project. Project will be depreciated straight line to zero over the project's life. The tax rate is 35%. The investment is expected to be sold for scrap for S500,000 at the end of the project. Let R 6.57% 1) What is depreciation per year? 2) What is OCF per year? 3) What is the present value of the OCF? What is ATSV? 5) What is present value of ATSV
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started