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LOTUS INC This company is planning to invest in a project. The management accounting department received the following information Capex Depreciation Tax rate Project period

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LOTUS INC This company is planning to invest in a project. The management accounting department received the following information Capex Depreciation Tax rate Project period Revenue Rent Salary Utilities Discount Rate Sale of asset @ end of project Interest expense Net working Capital Repairs expense $15000 $1500 15% 4 years $6000 500 2500 500 9% 4000 $1000 $5500 $900 REQUIRED a) Calculate the initial investment b) Calculate each year cash flow c) Calculate the terminal value of the asset used d) Calculate the NPV e) Find IRR

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