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Derbent enterprise is evaluating the safety glass project. 2 , 0 0 0 , 0 0 0 TL fixed asset investment and 1 8 %

Derbent enterprise is evaluating the safety glass project. 2,000,000 TL fixed asset investment and
18% cost for the project requiring a current asset investment of 500,000 TL (two million five hundred thousand liras in total).
Foreign resources of 1,000,000 TL can be found. The remaining part comes from the equity capital of the business.
will be covered. The business currently has a 25% corporate tax rate and 15% profitability (cost of equity).
has.
1-Considering the 200,000 TL depreciation included in the cost of sales, the cash flow given below is
Complete the table and find the expected net cash flow each year. projection
The liquidation value determined for the end of the year is given in the table.
2-Calculate the internal profitability rate of the project based on the information obtained above. Internal profitability ratio and
Indicate the feasibility of this project by comparing the resource cost.
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