Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is the excel that I have been working on. I'm not sure what formula to put for Net operating income, working capital, and net

Below is the excel that I have been working on. I'm not sure what formula to put for Net operating income, working capital, and net cash flows for the 10 years. Could you please show me what formula I need to enter to find the solution. The IRR should end up to 142.59% and the NPV at 18% should be $165,556,208.65.

THANK YOU!!!

image text in transcribedimage text in transcribedimage text in transcribed

shown in Table 2. The cost of equipment, including shipping, handling, and installation, was estimated at $30 million. It was estimated that after 10 years, the equipment and tools could be sold for $3 million. The manufacturing would be done in an unused plant of the firm. Similar plant locations could be leased for $10,000 per month. Fixed costs were estimated to be $2,000,000 per year while variable production costs per unit were expected to be $400. To get the project underway, additional inventory of $500,000 would be required. The company would increase its accounts payable by. $700,000 and its accounts receivable by $1,000,000. The weighted average cost of capital was calculated to be 18%. can0.000peryearnthe company's tax rate was 34%. Table 1 Projected Unit Sales and Price for Lazy Mower Modified ACRS Depreciation Allowances shown in Table 2. The cost of equipment, including shipping, handling, and installation, was estimated at $30 million. It was estimated that after 10 years, the equipment and tools could be sold for $3 million. The manufacturing would be done in an unused plant of the firm. Similar plant locations could be leased for $10,000 per month. Fixed costs were estimated to be $2,000,000 per year while variable production costs per unit were expected to be $400. To get the project underway, additional inventory of $500,000 would be required. The company would increase its accounts payable by. $700,000 and its accounts receivable by $1,000,000. The weighted average cost of capital was calculated to be 18%. can0.000peryearnthe company's tax rate was 34%. Table 1 Projected Unit Sales and Price for Lazy Mower Modified ACRS Depreciation Allowances

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Finance An Introduction To Financial Institutions Investments And Management

Authors: Herbert B. Mayo, Michael J Lavelle

13th Edition

0357714741, 978-0357714744

More Books

Students also viewed these Finance questions

Question

How do managers decide which products to produce and sell?

Answered: 1 week ago

Question

3. Define the attributions we use to explain behavior

Answered: 1 week ago