Directions:

• 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.
• The annual EBIT for this new project will be 18% of the project's cost.
• 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. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate.

My answer:

In 2016, Toyota reported their total as 8,681 thousands of units. Their total finance receivables and operating leases for 2016 came to 4,505,788 Millions in Yen. The operating income from 2015 to 2016 had an increase of only 3.8%.

2016 total = 103,407

103,407/100=1034.07 (this number equals 1%)

1034.07*10= 10340.7 (this number equals 10%)

10,340.7 + 103407 = 113,747.7 Millions in Yen is the total for a 10% increase.

Does this look correct? If not, could you help me?