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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?
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
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