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NO 1. (40 points) Andy is evaluating a project that require an investment costs of $908,000 has a 6-year life and has no salvage value.
NO 1. (40 points) Andy is evaluating a project that require an investment costs of $908,000 has a 6-year life and has no salvage value. This project will require $305,000 in net working capital at the start and subsequently, total net working capital at the end of each year will be about 12% of sales for that year. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 75,000 units per year, and decrease to 65,000 on year 4, 62,000 on year 5 and 61,000 on year 6. Price per unit is $47, and drop to $42 on year 4, 5, and 6. Variable cost per unit is $23, and fixed costs are $850,000 per year. The tax rate is 37%, and this project risk level require 18% return. Referring to chapter 10, answer these problems: a. Prepare the projected income statements table! Buatlah tabel proyeksi laporan laba rugi!(12 points) b. Prepare the projected cashflow table! Buatlah tabel proyeksi tabel arus kas! (12 points) c. Prepare the projected total cashflows table! Buatlah tabel proyeksi total arus kas! (12 points) d. Make investment decision based on those tables! Buatlah keputusan investasi berdasarkan dari tabel tersebut! (4 points) NO 1. (40 points) Andy is evaluating a project that require an investment costs of $908,000 has a 6-year life and has no salvage value. This project will require $305,000 in net working capital at the start and subsequently, total net working capital at the end of each year will be about 12% of sales for that year. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 75,000 units per year, and decrease to 65,000 on year 4, 62,000 on year 5 and 61,000 on year 6. Price per unit is $47, and drop to $42 on year 4, 5, and 6. Variable cost per unit is $23, and fixed costs are $850,000 per year. The tax rate is 37%, and this project risk level require 18% return. Referring to chapter 10, answer these problems: a. Prepare the projected income statements table! Buatlah tabel proyeksi laporan laba rugi!(12 points) b. Prepare the projected cashflow table! Buatlah tabel proyeksi tabel arus kas! (12 points) c. Prepare the projected total cashflows table! Buatlah tabel proyeksi total arus kas! (12 points) d. Make investment decision based on those tables! Buatlah keputusan investasi berdasarkan dari tabel tersebut! (4 points)
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