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All I am asking is to show the values that I need to input for NPV, IRR, and MIRR as well as the answer for

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All I am asking is to show the values that I need to input for NPV, IRR, and MIRR as well as the answer for b) .The values im entering are giving me the wrong results.

GOODWEEK TIRES, INC. After extensive research and development, Goodweek Tires, Inc., has recently developed a new tire, the SuperTread, and must decide whether to make the investment necessary to produce and market it. The tire would be ideal for drivers doing a large amount of wet weather and off-road driving in addition to normal freeway usage. The research and development costs so far have totaled about $10 million. The SuperTread would be put on the market beginning this year, and Goodweek expects it to stay on the market for a total of four years. Test marketing costing $5 million has shown that there is a significant market for a SuperTread-type tire. As a financial analyst at Goodweek Tires, you have been asked by your CFO, Adam Smith, to evaluate the SuperTread project and provide a recommendation on whether to go ahead with the investment. Except for the initial investment that will occur immediately, assume all cash flows will occur at year-end. Goodweek must initially invest $160 million in production equipment to make the SuperTread. This equipment is expected to be sold for $65 million at the end of four years. Goodweek intends to sell the SuperTread to two distinct markets. The original equipment manufacturer market consists primarily of the large automobile companies that buy tires for new cars. The replacement market consists of all tires purchased after the automobile has left the factory. The SuperTread is expected to sell for an average $51.17 per tire, and the variable cost to produce each tire will be $29.00, both in the first year. Goodweek Tires intends to raise prices at 4.28 percent per year, variable costs will also increase at the same rate. In addition, the SuperTread project will incur $43 million in selling, general and administrative (SG&A) expenses in the first year. These expenses are expected to increase at 3.25 percent in the subsequent years. Goodweek's corporate tax rate is 40 percent. The company uses a 13.4 percent discount rate to evaluate new product decisions. Industry analysts estimate that the tire market size will be 48 million tires this year and that it will grow at 2.25 percent annually. Goodweek Tires expects the SuperTread to capture 9.5 percent of the market share. The immediate initial working capital requirement is $9 million. Thereafter, the net working capital requirements will be 15 percent of sales. The appropriate depreciation schedule for the equipment is the seven-year MACRS depreciation schedule (please, see the depreciation rates in the Excel spreadsheet). a) What are the Net Present Value, the Internal Rate of Return, and the Modified Internal Rate of Return on this project? 1 b) What should the average price for SuperTread be in the first year to this project have a Net Present Value equal to zero? GOODWEEK TIRES, INC. After extensive research and development, Goodweek Tires, Inc., has recently developed a new tire, the SuperTread, and must decide whether to make the investment necessary to produce and market it. The tire would be ideal for drivers doing a large amount of wet weather and off-road driving in addition to normal freeway usage. The research and development costs so far have totaled about $10 million. The SuperTread would be put on the market beginning this year, and Goodweek expects it to stay on the market for a total of four years. Test marketing costing $5 million has shown that there is a significant market for a SuperTread-type tire. As a financial analyst at Goodweek Tires, you have been asked by your CFO, Adam Smith, to evaluate the SuperTread project and provide a recommendation on whether to go ahead with the investment. Except for the initial investment that will occur immediately, assume all cash flows will occur at year-end. Goodweek must initially invest $160 million in production equipment to make the SuperTread. This equipment is expected to be sold for $65 million at the end of four years. Goodweek intends to sell the SuperTread to two distinct markets. The original equipment manufacturer market consists primarily of the large automobile companies that buy tires for new cars. The replacement market consists of all tires purchased after the automobile has left the factory. The SuperTread is expected to sell for an average $51.17 per tire, and the variable cost to produce each tire will be $29.00, both in the first year. Goodweek Tires intends to raise prices at 4.28 percent per year, variable costs will also increase at the same rate. In addition, the SuperTread project will incur $43 million in selling, general and administrative (SG&A) expenses in the first year. These expenses are expected to increase at 3.25 percent in the subsequent years. Goodweek's corporate tax rate is 40 percent. The company uses a 13.4 percent discount rate to evaluate new product decisions. Industry analysts estimate that the tire market size will be 48 million tires this year and that it will grow at 2.25 percent annually. Goodweek Tires expects the SuperTread to capture 9.5 percent of the market share. The immediate initial working capital requirement is $9 million. Thereafter, the net working capital requirements will be 15 percent of sales. The appropriate depreciation schedule for the equipment is the seven-year MACRS depreciation schedule (please, see the depreciation rates in the Excel spreadsheet). a) What are the Net Present Value, the Internal Rate of Return, and the Modified Internal Rate of Return on this project? 1 b) What should the average price for SuperTread be in the first year to this project have a Net Present Value equal to zero

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