First, what is the annual operating cash flow of the project for year 1? $ 1266000 (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 2? $ 1882800 (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 3? $ 1948680 (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 4? $ 2157608 (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 5? $ 1695608 (Round to the nearest dollar.) Next, what is the after-tax cash flow of the equipment at disposal? $ 424,304 (Round to the nearest dollar.) Then, what is the incremental cash flow of the project in year 0? $ - 4900000 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 1? $ 1266000 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 2? $ 1882800 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 3? $ 1948680 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 4? $ 2157608 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 5? $ 2719912 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 3? $ 1948680 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 4? $ 2157608 (Round to the nearest dollar.) What is the incremental cash flow of the project in year 5? $ 2719912 (Round to the nearest dollar.) .) So, what is the IRR of the project? 25.80 % (Round to two decimal places.) Kira Gillespie 04/04/22 6:21 PM na Homework: Chapter 10 Homework Question 8, P10-20 (similar to) Part 1 of 13 HW Score: 86.54%, 6.92 of 8 points Points: 0.92 of 1 Save Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replican). The necessary foundry equipment will cost a total of 54,300,000 and will be depreciated using a five year MACRS life. The sales manager has an estimate for the sale of the ho classic Thunderbirds. The armowl sales volume will be as follow Year one: 240 Year four: 350 Year two 300 Year five: 320 Year three: 360 If the sales price is $28.000 per car, variable costs are $18,000 per car, and fixed costs are $1,400,000 annually, what is the annual operating cash flow if the tax rate is 30%? The equipment is sold for salvage for $500,000 at the end of year five. Net working capital increases by $600,000 at the beginning of the project (year ) and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows. ext Library Calculator First, what is the annual operating cash flow of the project for year 1? Part 1 of 13 Points: 0.92 of 1 - X he nece e for the Data table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table rating ca ng of the Year 1 2 3 4 5 3-Year 33.33% 44.45% 14.81% 7.41% 5-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% voon 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% 7 8 9 10 11 Print Done View an example Get more help Clear all 46 4 N C atv AC
