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Ford company has made an investment of 800.000 $ in Year 0 and it will start operating in Year 1. In the year 0, 100.000
Ford company has made an investment of 800.000 $ in Year 0 and it will start operating in Year 1. In the year 0, 100.000 $ working capital was provided from the stockholders for the start, and the working capital is reset in the year 6. If your company's weighted average capital cost is 15%, in line with this information;
- It is forecasted that our investment will wear out with a straight-line method over a 5-year period and the salvage value will be 0 $ at the end of the 6th year. The company's tax rate is 20%. In this case, create the cash flow statement of the company in the period covering 0-6 years.
- Calculate Payback Period.
- Calculate Discounted Payback Period.
- Calculate Net Present Value.
- Calculate Profitability Index.
- Calculate Internal Rate of Return.
- Calculate Modified Internal Rate of Return.
Please solve it more detail and understandable. Thanks <3
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