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CL company is planning to insest in the prodoction and coenmercialization of a new line of fragrances aimed at the middle-income market, Fstimated total investmees

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CL company is planning to insest in the prodoction and coenmercialization of a new line of fragrances aimed at the middle-income market, Fstimated total investmees in equaipment and factories for the project is (6000+X100) millioe. Depreciated evenly over 4 years. Due to rapidly changing technology, the liquidation price of machinery, equipment and factories for the project at the end of the project is estienated to be only (1000+X100) miltson VND. The project has available land to build a factory. That lard has the current market rental price of 300 million/ycar. The project will come into operation in 2 years. The design sapacity of the project is (35,000+X1000) products/year. Actaal molalixing capacity in 2 years is 706 and 90% respectively. To finance the project, the investor mast berrov a bank loan equivalent to 40 th of the total initial investment cost. Pay off debt and interest in 2 years with equal peincipal repayment method, and a 10% annual interest. The selling price of a product unit is (250+10X) thousand VND in the firs year and increases by 10% annually due to chaeges in supply and demand. Cost of goods sold, exclading depreciation, accounts for 40% of the selling price. Sales and admieistration expenses for years I and 2 are 1,000 and 1,500 millica respectively. Cash demand, accounts payable account for 10% and 15% of COOS. Reccivables demand accouns for 10% of sales. Inventories account for 10% of prodactiog ouput. The sompany aceoants by the LIFO method. The corporate income tax rate is 20%. The investor's required rate of return in the abernce of a loan is 18%. Requirements: 1. Build the plans of investment and depreciation of the project (1 point) 2. Build the repayment plan and determine the NCF. D (2 points) 3. Build the income plan of the project. (2 points) 4. Build the working capital requirement plan (l point) 5. Determine the cash flow from the financial perspective, i.c.: AEPV, TIP. (2.5 points) 6. Calculate NPV_AEPV and NPV-Tip. What is your final docision: lnvest or not irvest? without loan or with loan? (1.5 points) Note: X is the number of ordinal units of the eandidate in the list. For example, if the candidase has the ordinal number 13,50X3 and the selling price of a product unit is 280(250+103) thousand VND. CL company is planning to insest in the prodoction and coenmercialization of a new line of fragrances aimed at the middle-income market, Fstimated total investmees in equaipment and factories for the project is (6000+X100) millioe. Depreciated evenly over 4 years. Due to rapidly changing technology, the liquidation price of machinery, equipment and factories for the project at the end of the project is estienated to be only (1000+X100) miltson VND. The project has available land to build a factory. That lard has the current market rental price of 300 million/ycar. The project will come into operation in 2 years. The design sapacity of the project is (35,000+X1000) products/year. Actaal molalixing capacity in 2 years is 706 and 90% respectively. To finance the project, the investor mast berrov a bank loan equivalent to 40 th of the total initial investment cost. Pay off debt and interest in 2 years with equal peincipal repayment method, and a 10% annual interest. The selling price of a product unit is (250+10X) thousand VND in the firs year and increases by 10% annually due to chaeges in supply and demand. Cost of goods sold, exclading depreciation, accounts for 40% of the selling price. Sales and admieistration expenses for years I and 2 are 1,000 and 1,500 millica respectively. Cash demand, accounts payable account for 10% and 15% of COOS. Reccivables demand accouns for 10% of sales. Inventories account for 10% of prodactiog ouput. The sompany aceoants by the LIFO method. The corporate income tax rate is 20%. The investor's required rate of return in the abernce of a loan is 18%. Requirements: 1. Build the plans of investment and depreciation of the project (1 point) 2. Build the repayment plan and determine the NCF. D (2 points) 3. Build the income plan of the project. (2 points) 4. Build the working capital requirement plan (l point) 5. Determine the cash flow from the financial perspective, i.c.: AEPV, TIP. (2.5 points) 6. Calculate NPV_AEPV and NPV-Tip. What is your final docision: lnvest or not irvest? without loan or with loan? (1.5 points) Note: X is the number of ordinal units of the eandidate in the list. For example, if the candidase has the ordinal number 13,50X3 and the selling price of a product unit is 280(250+103) thousand VND

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