Intro It is the end of 2021. You're a financial analyst working for Tesla Motors. The company is considering producing the new Model Z car and is predicting the following sales (in $ million). Assume all cash flows occur at the end of the year. A B D E 1 2023 2024 2025 2026 2 Sales 160 208 249.6 274.56 COGS and SG&A are expected to add up to 70% of sales. After 2026, production will end and the factory will shut down. To start production at the beginning of 2023, Tesla has to invest $200 million now and $100 million in 2022 to build a new factory. After completion at the end of 2022, the factory can be depreciated straight to zero over 10 years. The factory is expected to be worth $100 million at the end of 2026. Net working capital consists mainly of inventory of car components, minus some current liabilities. Net working capital is expected to be always 15% of sales, until the last year of the project when it will all be recouped. Tesla has a weighted average cost of capital of 14% and a marginal tax rate is 23%. Part 1 18 | Attempt 3/10 for 10 pts. Open a spreadsheet with a blank tab and name it 'CF', for cash flows. Duplicate the table above and extend it to find the operating cash flow for each year. What is the operating cash flow for 2026 (in $ million)? 31.60622 Try again Try again See solution (-2 pts.) Part 2 18 Attempt 1/10 for 10 pts. Extend the spreadsheet to find net capital spending for each year. What is net capital spending for 2026 (in $ million)? Include the after-tax salvage value of the factory and enter it with the correct sign. 0+ decimals Submit 18 - Attempt 1/10 for 10 pts. Part 3 Extend the spreadsheet to find the change in net working capital for each year. What is the change in net working capital for 2026 (in $ million)? 1+ decimals Submit 1 B "Attempt 1/10 for 10 pts. Part 4 Extend the spreadsheet to find the cash flow from assets for each year. What is the CFA for 2026 (in $ million)? 0+ decimals | Attempt 1/10 for 10 pts. Part 5 What is the NPV of the project (in $ million)? 0+ decimals Submit Intro It is the end of 2021. You're a financial analyst working for Tesla Motors. The company is considering producing the new Model Z car and is predicting the following sales (in $ million). Assume all cash flows occur at the end of the year. A B D E 1 2023 2024 2025 2026 2 Sales 160 208 249.6 274.56 COGS and SG&A are expected to add up to 70% of sales. After 2026, production will end and the factory will shut down. To start production at the beginning of 2023, Tesla has to invest $200 million now and $100 million in 2022 to build a new factory. After completion at the end of 2022, the factory can be depreciated straight to zero over 10 years. The factory is expected to be worth $100 million at the end of 2026. Net working capital consists mainly of inventory of car components, minus some current liabilities. Net working capital is expected to be always 15% of sales, until the last year of the project when it will all be recouped. Tesla has a weighted average cost of capital of 14% and a marginal tax rate is 23%. Part 1 18 | Attempt 3/10 for 10 pts. Open a spreadsheet with a blank tab and name it 'CF', for cash flows. Duplicate the table above and extend it to find the operating cash flow for each year. What is the operating cash flow for 2026 (in $ million)? 31.60622 Try again Try again See solution (-2 pts.) Part 2 18 Attempt 1/10 for 10 pts. Extend the spreadsheet to find net capital spending for each year. What is net capital spending for 2026 (in $ million)? Include the after-tax salvage value of the factory and enter it with the correct sign. 0+ decimals Submit 18 - Attempt 1/10 for 10 pts. Part 3 Extend the spreadsheet to find the change in net working capital for each year. What is the change in net working capital for 2026 (in $ million)? 1+ decimals Submit 1 B "Attempt 1/10 for 10 pts. Part 4 Extend the spreadsheet to find the cash flow from assets for each year. What is the CFA for 2026 (in $ million)? 0+ decimals | Attempt 1/10 for 10 pts. Part 5 What is the NPV of the project (in $ million)? 0+ decimals Submit
