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Desai Industries in analyzing an average rin project, and the following data luv bown developed Unitsales will be constant, but the sales price should increase
Desai Industries in analyzing an average rin project, and the following data luv bown developed Unitsales will be constant, but the sales price should increase with inflation. Fised conts will also be constant, but variable costs should ride with intlation. The project should last for a year. Under the new tas law, the appetitused in the project is eligible for 100 bonus depreciation, so it will be fully depreciated at tao. At the end of the project's life, the equipment would have no salvage value. No change in tut operating working capital (Nowe) would be required for the project. This is just one of many projects for the firm, so any come on this project can be used to offset aina on other firm projects What is the projects aspected NPV? Do not round the intermediate calculations and round the final aniwer to the nearest shole number WACC 10.04 Equiment cost $200,000 Units sold 56.000 Average price per unit Year 1 525.00 Fued op costs constant) $150.000 Variable op. costunit. Year 1 520.20 Expected annual inflation rate 5.00% Tax rate 0595.14 395414 OSVETI ES
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