Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

how do i calculate net cost and PV of cashflow? (formulas) 1 Annual revenue from specialised precision part $5M 2 Weighted average cost of capital

how do i calculate net cost and PV of cashflow? (formulas) image text in transcribed
1 Annual revenue from specialised precision part $5M 2 Weighted average cost of capital (WACC) 10% 3 Marginal tax rate 21% 4 5 6 First Alternative: Update the existing equipment to handle the new alloy 7 DF at 10% Net Cost 500 PV of Cashflow 500 8 9 10 11 12 13 14 Year 0 1 2 3 4 5 Outflow -500 -300 -300 -300 -300 -300 Depreciaton Tax shield 0 95.375 95.375 95.375 60.375 60.375 0.909090909 0.826446281 0.751314801 0.683013455 0.620921323 15

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

Lords Of Finance The Bankers Who Broke The World

Authors: Liaquat Ahamed

1st Edition

0143116800, 978-0143116806

More Books

Students also viewed these Finance questions