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Fill in the missing numbers for the following statement of comprehensive income. (Input all amounts as positive values. Omit $ sign in your response.)
Fill in the missing numbers for the following statement of comprehensive income. (Input all amounts as positive values. Omit $ sign in your response.) Sales Costs Depreciation EBIT Taxes (348) Net income Calculate the OCF. $ OCF $ $ $ What is the CCA tax shield? CCA tax shield 727,500 501,500. 88,800 Aylmer-in-You (AIY) Inc. projects unit sales for a new opera tenor emulation implant as follows: Year 1 2 3 4 5 Unit Sales 104,000 118,000 128,000 148,000 93,000 Production of the implants will require $777,000 in net working capital to start and additional net working capital investments each year equal to 10% of the projected sales increase for the following year. (Because sales are expected to fall in Year 5, there is no NWC cash flow occurring for Year 4.) Total fixed costs are $180,000 per year, variable production costs are $300 per unit, and the units are priced at $360 each. The equipment needed to begin production has an installed cost of $13.0 million. Because the implants are intended for professional singers, this equipment is considered industrial machinery and thus falls into Class 8 for tax purposes (20%). In five years, this equipment can be sold for about 15% of its acquisition cost. AlY is in the 40% marginal tax bracket and has a required return on all its projects of 21%. Based on these preliminary project estimates, what is the NPV of the project? What is the IRR? (Enter your answer in dollars, not in millions of dollars, i.e. 1,234,567. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) NPV IRR
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