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Clearly show your calculations and do not copy paste your values a) Estimate the Cash Flows and find the NPV and IRR of the project(
Clearly show your calculations and do not copy paste your values | |||||||
a) Estimate the Cash Flows and find the NPV and IRR of the project( 8 Marks) | |||||||
b) Find the sensitivity of NPV with respect to the WACC for +30% and -30% devaition from the base value of 10% (2 Marks) | |||||||
WACC | 10% | ||||||
Net investment in fixed assets | 75000 | ||||||
Required new working capital | 15000 | ||||||
Straight-line deprec. Rate (every year) | 33.33% | ||||||
Sales revenues( each year) | 75000 | ||||||
Operating cost excluding depreciation, each year | 25000 | ||||||
Salvage value of the equipment | 1000 | ||||||
Tax Rate | 35% |
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