Question
A project has a 7 year life and costs $400,000. Depreciation is straight line to zero over the life of the project and there is
A project has a 7 year life and costs $400,000. Depreciation is straight line to zero over the life of the project and there is no salvage value. The tax rate is 30% and a 12% return on this project. Sales are expected to be 75,000 units per year.
If the fixed cost per unit is $600,000 per year, the variable cost is $40 per unit and the revenue for each unit is $50:
What is the base-case cash flow ?
What is the NPV ?
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To calculate the basecase cash flow we need to determine the annual revenue annual cost and annual d...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
