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Need the formula and answer for each row Williams Corp. makes chrome wheels that are sold through mail order and auto supply stores nationally. They

image text in transcribedNeed the formula and answer for each row

Williams Corp. makes chrome wheels that are sold through mail order and auto supply stores nationally. They are considering the construction of a new manufacturing plant in South Dakota to increase their capacity by 25%. This new capacity will be needed to meet the demand from a large national auto parts chain. The plant will be able to manufacture 20,000 sets of chrome wheels a year when at full capacity. They will sell the wheels for $120 a set. The COGS (excluding depreciation) is projected to be 65% of sales or $78 per set. They expect that fixed operating expenses (all of which are incremental new expenses) will be $90,000 a year. The land will cost $200,000 today and cannot be depreciated. The plant and equipment will cost $2,300,000 today and will be depreciated for tax purposes on a straight line basis (10% per year) to a value of zero over 10 years. They expect to be able to sell 10,000 sets in year 1 and they expect sales to grow by 4% per year. At the end of ten years they will close the plant and expect to be able to sell it and the land at that time for $1,200,000 before taxes. The project is expected to require an initial investment of $180,000 in Accounts Receivable & Inventory less Accounts Payable and Accrued Expenses or Net Operating Working Capital (NOWC). In subsequent years the year end investment in NOWC is expected to be 15% of next year's sales. Since sales stop after year 10 there will be $0 in sales in year eleven therefore no NOWC will be required at the end of year 10. The opportunity cost of capital for Williams Corp. is 9% and their marginal income tax rate is 25%. Calculate the NPV and IRR of the project. Should Williams invest in the new plant

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