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Fill out the excel below based on the information in the problem: Blooper Industries Blooper forecasts an initial investment of $10 million in mining equipment.
Fill out the excel below based on the information in the problem:
Blooper Industries | ||||||||
Blooper forecasts an initial investment of $10 million in mining equipment. | ||||||||
Equipment will be depreciated straight-line over 5 years and can be sold at the end of year 6 for $2 million. | ||||||||
The company will sell 750,000 pounds of magnoosium per year for 6 years at a price of $20 per pound in year 1. | ||||||||
Expenses each year will be 66.666% of sales. | ||||||||
Both revenue and expenses will grow at the rate of inflation, which is 5% per year. | ||||||||
Working capital investment in year 0 will be $1.5 million. That investment will be recovered at the end of year 6. | ||||||||
Bloopers tax rate is 35%. If the cost of capital is 12%, find the NPV, IRR, MIRR, and Payback of this investment. | ||||||||
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | |
Revenue | 0 | |||||||
Expenses | 0 | 0 | 0 | 0 | 0 | |||
Depreciation | ||||||||
Pretax profit | 0 | 0 | 0 | 0 | 0 | |||
Tax | 35% | 35% | 35% | 35% | 35% | 35% | 35% | |
Profit | 0 | 0 | 0 | 0 | 0 | |||
Op CF | ||||||||
NWC investment | ||||||||
Equipment Cash flow | ||||||||
Cash flow | ||||||||
CUM. CF | 0 | 0 | 0 | 0 |
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