Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do the cash flow calculations correct? Why? ID Details Year o Year 1 Year 2 Year 3 Year 4 Year 5 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000

Do the cash flow calculations correct? Why?

image text in transcribed

ID Details Year o Year 1 Year 2 Year 3 Year 4 Year 5 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 A Cash Inflow 1. Total sales 2. Equity: a. Investment b. Working capital 3. Residual Total Cash inflow for NPV, IRR, and PI 523,070,000 1,113,240,000 1,636,310,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 523,070,000 B Cash outflow 1. Investment 2. Variable costs 3. Fixed costs 4. Tax 1,007,640,000 105,600,000 9,720,750 1,122,960,750 1,122,960,750 1,007,640,000 105,600,000 9,720,750 1,122,960,750 1,122,960,750 1,007,640,000 1,007,640,000 1,007,640,000 105,600,000 105,600,000 105,600,000 9,720,750 9,720,750 9,720,750 1,122,960,750 1,122,960,750 1,122,960,750 1,122,960,750 1,122,960,750 1,122,960,750 Total Cash outflow for NPV, IRR, and PI 523,070,000 523,070,000 C Net Cash Flow (NCF) D Cash flow for NPV, IRR, and PI Discount factor (14%) Present value E Cummulative (NPV) 1,113,240,000 101,039,250 (523,070,000) 101,039,250 0.877 (523,070,000) 88,630,921 (523,070,000) (434,439,079) 1 101,039,250 101,039,250 101,039,250 101,039,250 101,039,250 101,039,250 0.769 0.675 0.592 77,746,422 68,198,616 59,823,347 (356,692,657) (288,494,041) (228,670,694) 101,039,250 101,039,250 0.519 52,476,620 (176,194,074)

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

Principles Of Financial Accounting

Authors: Jerry J. Weygandt, Lorena Mitrione, Michaela Rankin, Keryn Chalmers, Paul D. Kimmel

3rd Edition

0730302296, 978-0730302292

More Books

Students also viewed these Accounting questions

Question

What is attitude ambivalence?

Answered: 1 week ago

Question

Explain Hierarchical organizational structure with diagram.

Answered: 1 week ago

Question

Learn about the labor context in Canada and Quebec.

Answered: 1 week ago