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need help ASAP thank you Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary
need help ASAP thank you
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,500,000 and will be depreciated using a five-year MACRS life. The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: If the sales price is $28,000 per car, variable costs are $20,000 per car, and fixed costs are $1,100,000 annually, what is the annual operating cash flow if the tax rate is 30% ? The equipment is sold for salvage for $500,000 at the end of year five. Net working capital increases by $500,000 at the beginning of the project (year 0 ) and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows: First, what is the annual operating cash flow of the project for year 1 ? (Round to the nearest dollar.) What is the annual operating cash fow of the project for year 2? (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 3 ? (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 4 ? (Round to the nearest dollar.) What is the annual operating cash flow of the project for year 5 ? (Round to the nearest dollar.) Next, what is the after-tax cash flow of the equipment at disposal? (Round to the nearest dollar.) foundry equipment will cost a total of $4,500,000 and will be depreciated using a five-year MACRS life, sale of the classic Thunderbirds. The annual sales volume will be as followsi Year one: 250 Year two: 280 Year four: 360 Year three: 320 Year five: 320 If the sales price is $28,000 per car, variable costs are $20,000 per car, and fixed costs are $1,100,000 annuall the tax rate is 30% ? The equipment is sold, for salvage for $500,000 at the end of year five. Net working capita of the project (year 0 ) and is reduced back to its original level in the final year. Find the internal rate of return for flows. Next, what is the after-tax cash flow of the equipment at disposal? $ (Round to the nearest dollar.) Then, what is the incremental cash flow of the project in year 0 ? (Round to the nearest dollar.) What is the incremental cash flow of the project in year 1 ? (Round to the nearest dollar.) What is the incremental cash flow of the project in year 2? \$ (Round to the nearest dollar.) What is the incremental cash flow of the project in year 3 ? $ (Round to the nearest dollar.) What is the incremental cash flow of the project in year 4 ? What is the incremental cash flow of the project in year 1 ? (Round to the nearest dollar.) What is the incremental cash flow of the project in year 2? (Round to the nearest dollar.) What is the incremental cash flow of the project in year 3? (Round to the nearest dollar.) What is the incremental cash flow of the project in year 4 ? (Round to the nearest dollar.) What is the incremental cash flow of the project in year 5? (Round to the nearest dollar.) So, what is the IRR of the project? % (Round to two decimal places.) Data table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table Step by Step Solution
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