Graded Assignment 1: Ganges Express | Week 5 Graded Assignment | CTL.SC2x Courseware | edXGraded Assignment 1: Ganges Express

Ganges Express, a package delivery company, operates a fleet of Volvo trucks at one terminal where the lease of 175,000 euros per year is expiring. They had planned to set up another lease with Volvo for next three years at a cost of 200,000 euros per year in operating expenses. This is the total cost for the entire fleet. A Scania sales rep just called to offer a discounted price of 700,000 euros for Ganges to purchase a new fleet. If the new fleet is purchased, then Ganges expects to sell the Scania trucks at book value at the end of three years. They use straight-line depreciation over 5 years for new vehicles. Assume the tax rate is 30% and the discount rate for Ganges Express is 10%. Ignore inflation.

Part 1

Be sure to enter all of your answers in thousands of Euros without commas or currency signs. Round your answers to the closest thousands, e.g., if you answer is 23,495.45 then you would enter 23 and if your answer was 87,567 you would enter 88.

Remember that Check Answer checks all of the questions in this Part at the same time.

What is the projected EBIT for year 1 in thousands of Euros?

incorrect \(\)

What is the projected EBIT for year 2 in thousands of Euros?

incorrect \(\)

What is the projected EBIT for year 3 in thousands of Euros?

incorrect \(\)

You have used 2 of 2 submissions

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Part 1

(1 point possible)

Be sure to enter all of your answers in thousands of Euros without commas or currency signs. Round your answers to the closest thousands, e.g., if you answer is 23,495.45 then you would enter 23 and if your answer was 87,567 you would enter 88.

Remember that Check Answer checks all of the questions in this Part at the same time.

What is the projected EBIT for year 1 in thousands of Euros?

incorrect 220

What is the projected EBIT for year 2 in thousands of Euros?

incorrect 220

What is the projected EBIT for year 3 in thousands of Euros?

incorrect 220

You have used 2 of 2 submissions

Part 2

We next want to find the projected Net Capital Expenditures immediately and for years 1-3. Note that this is the number subtracted from NOPAT in the FCF formula, so an expenditure would be a POSITIVE number and income from salvaging capital equipment would be a NEGATIVE number.

Be sure to enter all of you answers in thousands of Euros without commas or currency signs. Round your answers to the closest thousands, e.g., if you answer is 23,495.45 then you would enter 23 and if your answer was -87,567 you would enter -88.

Remember that Check Answer checks all of the questions in this Part at the same time.

What are the projected Net Capital Expenditures immediately in thousands of Euros?

unanswered \(\)

What are the projected Net Capital Expenditures for year 1 in thousands of Euros?

unanswered \(\)

What are the projected Net Capital Expenditures for year 2 in thousands of Euros?

unanswered \(\)

What are the projected Net Capital Expenditures for year 3 in thousands of Euros?

unanswered \(\) Check your answerSave your answer

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' data-progress_detail="0/1" data-progress_status="none" data-url="/courses/course-v1:MITx+CTL.SC2x_2+2T2016/xblock/block-v1:MITx+CTL.SC2x_2+2T2016+type@problem+block@eca512127a39473f8601c40c9411f2da/handler/xmodule_handler" data-problem-id="block-v1:MITx+CTL.SC2x_2+2T2016+type@problem+block@eca512127a39473f8601c40c9411f2da">

Part 2

(1 point possible)

We next want to find the projected Net Capital Expenditures immediately and for years 1-3. Note that this is the number subtracted from NOPAT in the FCF formula, so an expenditure would be a POSITIVE number and income from salvaging capital equipment would be a NEGATIVE number.

Be sure to enter all of you answers in thousands of Euros without commas or currency signs. Round your answers to the closest thousands, e.g., if you answer is 23,495.45 then you would enter 23 and if your answer was -87,567 you would enter -88.

Remember that Check Answer checks all of the questions in this Part at the same time.

What are the projected Net Capital Expenditures immediately in thousands of Euros?

correct 700

What are the projected Net Capital Expenditures for year 1 in thousands of Euros?

correct 0

What are the projected Net Capital Expenditures for year 2 in thousands of Euros?

correct 0

What are the projected Net Capital Expenditures for year 3 in thousands of Euros?

correct 280 Final Check your answerSave your answer

You have used 1 of 2 submissions

Part 3

We next want to find the projected Free Cash Flows immediately and for years 1-3.

Be sure to enter all of you answers in thousands of Euros without commas or currency signs. Round your answers to the closest thousands, e.g., if you answer is 12,634 then you would enter 13 and if your answer was -4,228.49 you would enter -4.

Remember that Check Answer checks all of the questions in this Part at the same time.

What are the projected Free Cash Flows immediately in thousands of Euros?

unanswered \(\)

What are the projected Free Cash Flows for year 1 in thousands of Euros?

unanswered \(\)

What are the projected Free Cash Flows for year 2 in thousands of Euros?

unanswered \(\)

What are the projected Free Cash Flows for year 3 in thousands of Euros?

unanswered \(\) Check your answerSave your answer

You have used 0 of 2 submissions

' data-progress_detail="0/1" data-progress_status="none" data-url="/courses/course-v1:MITx+CTL.SC2x_2+2T2016/xblock/block-v1:MITx+CTL.SC2x_2+2T2016+type@problem+block@b07f3c9f93fa4093b0b38430a521fed1/handler/xmodule_handler" data-problem-id="block-v1:MITx+CTL.SC2x_2+2T2016+type@problem+block@b07f3c9f93fa4093b0b38430a521fed1">

Part 3

(1 point possible)

We next want to find the projected Free Cash Flows immediately and for years 1-3.

Be sure to enter all of you answers in thousands of Euros without commas or currency signs. Round your answers to the closest thousands, e.g., if you answer is 12,634 then you would enter 13 and if your answer was -4,228.49 you would enter -4.

Remember that Check Answer checks all of the questions in this Part at the same time.

What are the projected Free Cash Flows immediately in thousands of Euros?

correct 700

What are the projected Free Cash Flows for year 1 in thousands of Euros?

incorrect 238

What are the projected Free Cash Flows for year 2 in thousands of Euros?

incorrect 238

What are the projected Free Cash Flows for year 3 in thousands of Euros?

incorrect 518 Final Check your answerSave your answer

You have used 1 of 2 submissions