Amands Frausto 11/19/20 7:29 PM Business Finance CRN 11393 (1) Save Homework: Chapter 12 Homework Score: 0 of 4 pts 3 of 5 complete HW Score: 0%, 0 of 16 pts P12-14 (similar to) Question Help Related to Checkpoint 12.11 (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include powered skateboards and you feel you can sell 11,000 of these per year for 10 years after which time this project is expected to shut down with solar powered skateboards taking ovet). The gas skateboards would be for S70 each with variable costs of $45 for each one expenditure will be depreciated using the simplified straight-ane method down to zero over 10 years. The project who require a one-time initial investment of $70,000 in net working capital sociated with inventory and working capital investment will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate le 31 percent What is the initial cash outlay associated with this project? b. What are the annual net cash flow associated with this project for years through .. What is the terminal cash flow in year 10 (that is what is the tree cash flow in year 10 plus any additional cash flows associated with termination of the project d. What is the project's NPV given a required rate of return of 9 percent? a. The initial cash outlay associated with this project is (Round to the nearest Collar) Amands Frausto 11/19/20 7:29 PM Business Finance CRN 11393 (1) Save Homework: Chapter 12 Homework Score: 0 of 4 pts 3 of 5 complete HW Score: 0%, 0 of 16 pts P12-14 (similar to) Question Help Related to Checkpoint 12.11 (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include powered skateboards and you feel you can sell 11,000 of these per year for 10 years after which time this project is expected to shut down with solar powered skateboards taking ovet). The gas skateboards would be for S70 each with variable costs of $45 for each one expenditure will be depreciated using the simplified straight-ane method down to zero over 10 years. The project who require a one-time initial investment of $70,000 in net working capital sociated with inventory and working capital investment will be recovered when the project is shut down. Finally, assume that the firm's marginal tax rate le 31 percent What is the initial cash outlay associated with this project? b. What are the annual net cash flow associated with this project for years through .. What is the terminal cash flow in year 10 (that is what is the tree cash flow in year 10 plus any additional cash flows associated with termination of the project d. What is the project's NPV given a required rate of return of 9 percent? a. The initial cash outlay associated with this project is (Round to the nearest Collar)
