Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How can you calculate WACC from the information above? 0 2 3 4 1 2019 CAPEX ($80,000) 2020 2021 2022 CAPEX Salvage Value $ 80,000.00

image text in transcribedHow can you calculate WACC from the information above?

0 2 3 4 1 2019 CAPEX ($80,000) 2020 2021 2022 CAPEX Salvage Value $ 80,000.00 $ $ Annual Increases Sales Revenue Fixed Costs Tot. Variable cost Depreciation Operating profit Tax Net Working Capital 6% of Sales Fixed Costs $ 38,000.00 $ 170,000.00 $ 220,000.00 $ 250,000.00 $ 270,000.00 $ (38,000.00) $ (38,000.00) $ (38,000.00) $ (38,000.00) $(110,500.00) $(143,000.00) $(162,500.00) $ (175,500.00) $ (20,000.00) $ (20,000.00) $ (20,000.00) $ (20,000.00) $ 1,500.00 $ 19,000.00 $ 29,500.00 $ 36,500.00 $ (450.00) $ (5,700.00) $ (8,850.00) $ (10,950.00) $ 1,050.00 $ 13,300.00 $ 20,650.00 $ 25,550.00 $ (20,000.00) $ (20,000.00) $ (20,000.00) $ (20,000.00) $ 21,050.00 $ 33,300.00 $ 40,650.00 $ 45,550.00 $ $ $ $ 10,200.00 $ 13,200.00 $ 15,000.00 $ 16,200.00 $ 10,850.00 $ 20,100.00 $ 25,650.00 $ 29,350.00 Straight-line 4 yr 25% $(20,000.00) 25% $ (20,000.00) 25% $(20,000.00) 25% $ (20,000.00) NOPAT Depreciation $ Free Cash Flow Salvage Value, after-t Additional NWC/ Year Total Cash Flows PVIF PV Cash Flows Tax Rate 30% Discount Rate 10% Sum PV Cash Flows NPV

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Managerial Finance Brief

Authors: Chad J. Zutter, Scott B. Smart

8th Global Edition

1292267143, 978-1292267142

More Books

Students also viewed these Finance questions

Question

When would you recommend a fixed position layout?

Answered: 1 week ago

Question

What is the role of cognition and thought in learning?

Answered: 1 week ago