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MK Electronics Inc. is a consumer electronics company based in Depok. MK Electronics has a plan to launch the MK610 42 OLED monitor in 2022.

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MK Electronics Inc. is a consumer electronics company based in Depok. MK Electronics has a plan to launch the MK610 42 OLED monitor in 2022. The company has projected that 500 units will be sold in the first year, then the company forecasted a sales growth of ( 2 )% per year. The selling price of the MK610 monitor is Rp3,500,000 per unit. The production of the MK610 monitor will require Rp27,000,000 in net working capital to start and the net working capital investments equal to 10% of the projected sales each year. The total fixed costs are Rp10,000,000 and variable costs are 60% of the selling price. The installation of the equipment needed for MK610 production costs Rp250,000,000. The equipment will last for five years and will be depreciated using a straight line method. Within five years, the equipment could be sold for 10% of its cost (assume that the equipment will be depreciated until its value is 0 but is sold in the 5th year). The tax rate is assumed at 20% due to a new law that was passed last year. Question: 1. Calculate the projected cash flow (operating cash flow, change in NWC, and change in NCS) for 5 years. 2. Calculate the NPV if the required rate of return is 25% 3. Is the project acceptable? MK Electronics Inc. is a consumer electronics company based in Depok. MK Electronics has a plan to launch the MK610 42 OLED monitor in 2022. The company has projected that 500 units will be sold in the first year, then the company forecasted a sales growth of ( 2 )% per year. The selling price of the MK610 monitor is Rp3,500,000 per unit. The production of the MK610 monitor will require Rp27,000,000 in net working capital to start and the net working capital investments equal to 10% of the projected sales each year. The total fixed costs are Rp10,000,000 and variable costs are 60% of the selling price. The installation of the equipment needed for MK610 production costs Rp250,000,000. The equipment will last for five years and will be depreciated using a straight line method. Within five years, the equipment could be sold for 10% of its cost (assume that the equipment will be depreciated until its value is 0 but is sold in the 5th year). The tax rate is assumed at 20% due to a new law that was passed last year. Question: 1. Calculate the projected cash flow (operating cash flow, change in NWC, and change in NCS) for 5 years. 2. Calculate the NPV if the required rate of return is 25% 3. Is the project acceptable

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