Question
Ford company has made an investment of $ 800.000 in Year 0 and it will start operating in Year 1. In the year 0, $
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.
Can you solve quickly i will like if you solve more detail <3
| YEAR 0 | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 |
INVESTMENT | 800.000 |
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WORKING CAPITAL | 100.000 | 120.000 | 150.000 | 180.000 | 140.000 | 100.000 |
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CHANGE IN WORKING CAPITAL |
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REVENUES |
| 300.000 | 500.000 | 600.000 | 450.000 | 300.000 |
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EXPENSES |
| 90.000 | 150.000 | 180.000 | 150.000 | 30.000 |
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DEPRECIATION |
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PRETAX PROFIT |
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TAX (%20) |
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PROFIT AFTER TAXES |
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| YEAR 0 | YEAR 1 | YEAR 2 | YEAR 3 | YEAR 4 | YEAR 5 | YEAR 6 |
1.CASH FLOW FROM INVESTMENT |
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2.CASH FLOWS FROM WORKING CAPITAL |
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3.CASH FLOWS FROM OPERATIONS |
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TOTAL CASH FLOWS FROM PROJECT |
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