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how could i solve this in excel? 11-13. (Comprehmste problem) Traid Winds Corporation, a firm in the 21 percent marginal tax bracket with a 15
how could i solve this in excel?
11-13. (Comprehmste problem) Traid Winds Corporation, a firm in the 21 percent marginal tax bracket with a 15 percent required rate of return or cost of capital is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a tad product. be terminated. Given the following information determine the free cash flows associated with the project, the project's net present value the profitability index and the internal rate of retum. Apply the appropriate decision criteria. 514,000,000 Cost of new production equipment Shipping and installation costs 9 200.000 unit sales UNITS SOLD 8 8 8 8 70.000 sales price per unit $300/unit in years 1 through 4, $250/unit in year 5 Variable cost per unit $ 140/unit Annual tixed costs $700,000 per year in years 1-6 Working capital requirements There will be an initial working-capital requirement of S200,000 just to pet production started. For each year, the total investment in net working capital will be equal to 10 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 and 2 then decrease in year 4 Finaly, all working a liquidated at the termination of the project at the end of Depreciation method Bonus depreciation method and result the bonus depreciation decurs in year with no depreciation in any other yours if any losses bocut they would be otser by profits in other areas of the companyStep by Step Solution
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