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i need help with step 8 Equipment Requirements Operating Costs per Year Depreciation of $18,000 of 5-year equipment using ACRS The salvage value of equipment
i need help with step 8
Equipment Requirements Operating Costs per Year Depreciation of $18,000 of 5-year equipment using ACRS The salvage value of equipment equals 10% of the cost =$1,800.00. The firm will have to pay taxes on this income when the equipment is sold. Step 4: Pro forma income statement Step 1: Forecast Revenues: Forecasted 20,000 buckets at $3 a bucket in the first year, and rentals will grow at 750 buckets a year thereafter. The price will remain at $3 per bucket. Step 2: Forecast costs of balls and buckets: Forecasted that expenditures for balls and buckets are $3,000 initially. The cost of replacing balls and buckets will grow by 5% per year. Step7:ForecastTotalCashFlows Step 8: What is the NPV of this project? Step 5: Forecast Increases in Net Working Capital Net working capital needs are $3,000 to start. Thereafter, NWC grows by 5% per year. Step 6: Forecast Operating Cash Flows Equipment Requirements Operating Costs per Year Depreciation of $18,000 of 5-year equipment using ACRS The salvage value of equipment equals 10% of the cost =$1,800.00. The firm will have to pay taxes on this income when the equipment is sold. Step 4: Pro forma income statement Step 1: Forecast Revenues: Forecasted 20,000 buckets at $3 a bucket in the first year, and rentals will grow at 750 buckets a year thereafter. The price will remain at $3 per bucket. Step 2: Forecast costs of balls and buckets: Forecasted that expenditures for balls and buckets are $3,000 initially. The cost of replacing balls and buckets will grow by 5% per year. Step7:ForecastTotalCashFlows Step 8: What is the NPV of this project? Step 5: Forecast Increases in Net Working Capital Net working capital needs are $3,000 to start. Thereafter, NWC grows by 5% per year. Step 6: Forecast Operating Cash Flows Step by Step Solution
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