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Find Project Cash Flows, IRR, NPV Given: Investment: Trucks 3 @ $45,000 each w/3yr MACRS Diesel Fuel $2.25/gallon Machinery = $750,000 wl 7-yr MACRS Sell

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Find Project Cash Flows, IRR, NPV

Given: Investment: Trucks 3 @ $45,000 each w/3yr MACRS Diesel Fuel $2.25/gallon Machinery = $750,000 wl 7-yr MACRS Sell at end of Project: Trucks - $10,000 each Machinery - $150,000 Project Life = 5-Years Working capital: Account Receivables - 1.5 Months Accounts Payables - 1-month Finished Goods Inventory - 1 month Raw Material Inventory - 1-Month Product Selling Price - $250/unit Labor - $25/unit Materials - $40/unit Overhead - $200,000/year Annual quantity 5,000 Blended Income Tax Rate: 43% MARR - 15% Find: Project Cash Flows IRR NPV 8 Points 1 Point 1 Point Worksheet: Class 3 5 7 10 15 20 Year n Depreciation Rate 200% 200% 200% 200% 150% 150% 33.33 20.00 14.29 10.00 32.0024.4918.00 5.00 9.50 3.750 7.219 44.45 14.81* 7.41 19.2017.4914.408.556.677 11.52* 12.4911.527.706.177 11.52 8.93* 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.936 .55* 5.90* 4.888 5.904.522 4.46 6.55 6.56 6.55 5,914 .462#* 5.904.461 10 3.28 5.914.462 11 12 13 5.90 4.461 5.91 5.90 14 4.461 15 5,91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 Given: Investment: Trucks 3 @ $45,000 each w/3yr MACRS Diesel Fuel $2.25/gallon Machinery = $750,000 wl 7-yr MACRS Sell at end of Project: Trucks - $10,000 each Machinery - $150,000 Project Life = 5-Years Working capital: Account Receivables - 1.5 Months Accounts Payables - 1-month Finished Goods Inventory - 1 month Raw Material Inventory - 1-Month Product Selling Price - $250/unit Labor - $25/unit Materials - $40/unit Overhead - $200,000/year Annual quantity 5,000 Blended Income Tax Rate: 43% MARR - 15% Find: Project Cash Flows IRR NPV 8 Points 1 Point 1 Point Worksheet: Class 3 5 7 10 15 20 Year n Depreciation Rate 200% 200% 200% 200% 150% 150% 33.33 20.00 14.29 10.00 32.0024.4918.00 5.00 9.50 3.750 7.219 44.45 14.81* 7.41 19.2017.4914.408.556.677 11.52* 12.4911.527.706.177 11.52 8.93* 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.936 .55* 5.90* 4.888 5.904.522 4.46 6.55 6.56 6.55 5,914 .462#* 5.904.461 10 3.28 5.914.462 11 12 13 5.90 4.461 5.91 5.90 14 4.461 15 5,91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231

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