Question
Given a property plant and equipment is 37,378. The operation is looking to expand by $3,737 with the new equipment having a 12-year life span
Given a property plant and equipment is 37,378. The operation is looking to expand by $3,737 with the new equipment having a 12-year life span and a five percent salvage value. The annual EBIT is eighteen % of the cost of the project. with no increase in net working capital and a 35% tax rate.WACC 11%
Calculate the annual depreciation for the project,
The EBIT to free cash flow for the twelve-year life span,
and the following capital budgeting,
Net present value, Internal rate of return, discount payback period, and Wacc threshold of the project
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