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I need to solve the NPV, IRR, Profitability Index and Payback Years that are highlighted in the yellow box. Please explain how to do this
I need to solve the NPV, IRR, Profitability Index and Payback Years that are highlighted in the yellow box. Please explain how to do this and what answer I should come up with.
Capital Analysis Chapters 9, 10, 11 Year: Year: o Investment: (3,400) Sales Inputs Equipment Cost Salvage value, Year 4 Depreciation Per Year Units Sold Every Year Sales price per unit, Year 1 Annual change in sales price, after Year 1 Variable cost per unit (VC), Year 1 Annual change in VC, after Year 1 Fixed Cost (FC), Year 1 Annual change in FC, after Year 1 Project WACC Tax Rate Working Capital as% of next year's sales n n n Base Case 3,400 300 850 550 11.60 2.0% 6.00 2.0% 2,000 2.0% 11.85% 40.0% 12.0% Expenses: Vc FC Depreciation Net Earnings BT - $ $ $ - $ - $ - $ $ Tax (40%) Net Income $ Salvage value Depreciation NOWC Net Cash Flow DCF NPV IRR Profitabilty Index Payback Years (3,400) $ $oStep by Step Solution
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