Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 0 S 2,300,560S

image text in transcribedimage text in transcribed

Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 0 S 2,300,560S 2,300,560 2,300,560 795,160 0 1,505,400 S 1,505,400 S 1,505,400 192,390 0 1,348,210S 1,236,010 S 1,313,010 459,554 853,456 0 S 157,190 S269,390 S 192,390 20,000 S (41,000) (50,000) 0 S(481,030) S (1,171,000) S 1,013,526 S 1,113,796 S 1,576,876 Sales Cost of Goods Sold 795,160 S 795,160 S Gross Profit 157,190 $ 269,390 S Depreciation EBIT - Tax Incremental Earnings + Depreciation - Incremental Working Capital 471,874 S 876,336 S 432,604 S 803,406 S 71,000S S 1,100,000 S Capital Investment Incremental Free Cash Flow The NPV of the project is $ 1,838,463. (Round to the nearest dollar.) Complete the capital budgeting analysis for this project below: (Round to the nearest dollar.) Year 0 Year 1 Year 2 Year 3 0 S 2,300,560S 2,300,560 2,300,560 795,160 0 1,505,400 S 1,505,400 S 1,505,400 192,390 0 1,348,210S 1,236,010 S 1,313,010 459,554 853,456 0 S 157,190 S269,390 S 192,390 20,000 S (41,000) (50,000) 0 S(481,030) S (1,171,000) S 1,013,526 S 1,113,796 S 1,576,876 Sales Cost of Goods Sold 795,160 S 795,160 S Gross Profit 157,190 $ 269,390 S Depreciation EBIT - Tax Incremental Earnings + Depreciation - Incremental Working Capital 471,874 S 876,336 S 432,604 S 803,406 S 71,000S S 1,100,000 S Capital Investment Incremental Free Cash Flow The NPV of the project is $ 1,838,463. (Round to the nearest dollar.)

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

Financial Management In The Sport Industry

Authors: Matthew T. Brown, Daniel A. Rascher, Mark S. Nagel, Chad D. McEvoy

3rd Edition

0367321211, 978-0367321215

More Books

Students also viewed these Finance questions