Company: TESLA use 2020-2019 data

• The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.)
• The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant, and equipment's cost.

net property plant equipment = 12,747 (in millions)

project cost = 12,747 *10% = 1,274.7

salvage value = 1,274.7 * 5% = 63.74

• The annual EBIT for this new project will be 18% of the project's cost.

EBIT = 1,274.7 * 18% = 229.45

• The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project.
• The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. WACC: 13.95%

Prepare a narrated PowerPoint presentation that will highlight the following items.

• Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project
• Your calculations convert the project's EBIT to free cash flow for the 12 years of the project.
• The following capital budgeting results for the project
  • Net present value
  • Internal rate of return
  • Discounted payback period.
• Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project