General E 490 LE == = Conditional Formatting Format as Table Cell Styles 3 Insert * Delete Format $ -% 38- Sort & Filter Find & Select Ideas X Sensitivity Paste 62 Calibri (Body) 11 A A B IUBBO A x fox B C D E F 02/12/2020 ASSIGNMENT #1 CAPITAL BUDGETING DECISION MAKING DATA Cost of Project = $180.00 m Life of Project 7 yrs Use Stratight Line Depreciation to Book Value of ZERO. G H I J K L M N O P Q R S T U V This Project requires building a Mfg Plant in Ghana. Plant will produce Bi-cyle Parts. In addition to cost of Project, it is estimated that ST Investment of $ 35m will be required, 90% of this investment would be recoverable at the termination of the Project Salvage Value of Plant at end of 7th yr = $75.00 m IMPACT OF THE PLANT 1 Revenue in the First year will be = 2 Estimated Reve growth per yr = 3 1st yr expenses = 4 Estimated growth in Expenses per yr= $50.00 m 10% $20.00 m 8% COMPANY POLICY 1 Use a Discount Rate of: 10% 2 The Company is in 21% Marginal Tax Bracket (MTB) Questions: 1 First develop a Time-Line Digram and then calculate all of the CAPITAL BUDGETING Criteria. z Shoud this Project be accepted or not? Give your reasons based on the Capital Budgeting Criteria. General E 490 LE == = Conditional Formatting Format as Table Cell Styles 3 Insert * Delete Format $ -% 38- Sort & Filter Find & Select Ideas X Sensitivity Paste 62 Calibri (Body) 11 A A B IUBBO A x fox B C D E F 02/12/2020 ASSIGNMENT #1 CAPITAL BUDGETING DECISION MAKING DATA Cost of Project = $180.00 m Life of Project 7 yrs Use Stratight Line Depreciation to Book Value of ZERO. G H I J K L M N O P Q R S T U V This Project requires building a Mfg Plant in Ghana. Plant will produce Bi-cyle Parts. In addition to cost of Project, it is estimated that ST Investment of $ 35m will be required, 90% of this investment would be recoverable at the termination of the Project Salvage Value of Plant at end of 7th yr = $75.00 m IMPACT OF THE PLANT 1 Revenue in the First year will be = 2 Estimated Reve growth per yr = 3 1st yr expenses = 4 Estimated growth in Expenses per yr= $50.00 m 10% $20.00 m 8% COMPANY POLICY 1 Use a Discount Rate of: 10% 2 The Company is in 21% Marginal Tax Bracket (MTB) Questions: 1 First develop a Time-Line Digram and then calculate all of the CAPITAL BUDGETING Criteria. z Shoud this Project be accepted or not? Give your reasons based on the Capital Budgeting Criteria