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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!!!
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 AllowancesStep by Step Solution
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