Homework $1.$

Our firm has invested $90,000TL$ in year $0$ and will start operating in year $1,40,000$ TL of initial investment amount $(90,000$ TL$)$ is financed by bank loan where interest rate is $12\%$ and the payback period is $6$ years. The rest of the financing required for the investment is provided by shareholder's equity and its cost is $16\%.$ Net cash flows are as follows

$\backslash$table$[[$Year$,0,1,2,3,4,5,6],[\backslash$table$[[$Net cash$],[$flows$]],-90,000TL,30,000,40,000,50,000,40,000,30,000,15,000]]$

Apply the six investment criteria.

$6\frac{2015}{502}=(0450\mathrm{.}120\mathrm{.}80)+(0\mathrm{.}55016)$

$=0\mathrm{.}043+0\mathrm{.}088$

Example $2.$

$0131$

Our firm has invested $10,000,000$ TL in year $0$ and will start operating in year $1.$ In year $0,$ a working capital of $500,000$ TL is provided for a start from the partners. The straight$-$line amortization method is employed for the next $6$ years and salvage value will be $1,000,000$ TL at the end of year $6.$ If corporate tax is $20\%,$ prepare the net cash flow statement for years $0-6$ and apply six investment criteria. $($WACC $=15\%)$

$\backslash$table$[[$Years$,0,1,2,3,4,5],[$Investment$,10,000,000,,,,,],[\backslash$table$[[$Level of Working$],[$Capital$]],500,000,600,000,700,000,800,000,400,000,300,000],[$Income$,,8,000,000,9,000,000,10,000,000,6,000,000,4,000,000$