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need assistance with a DISNEY 10K report. Disney is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate

need assistance with a DISNEY 10K report.

  • Disney is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.)
  • The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost.
  • The annual EBIT for this new project will be 18% of the project's cost.
  • The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project.

  • Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project.
  • Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project.
  • The following capital budgeting results for the project
  • Net present value
  • Internal rate of return
  • Discounted payback period.
  • Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project

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