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Numbers 3 and 6 please. A company plans to expand operations by building a new factory in Hudson Ohio. The factory requires an initial outlay

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Numbers 3 and 6 please.

A company plans to expand operations by building a new factory in Hudson Ohio. The factory requires an initial outlay of $75,000,000 and is expected to generate the following net cash flows over the next 10 years. The project has an expected terminal value of $10,000,000 (included in $35,000,000 CF10 below) The company uses a required rate of return for this project of 10% Note: period 10 includes scrap/terminal value 1 2 3 4 5 6 7 8 9 10 (18,000,000) 23,000,000 32,000,000 46,000,000 46,000,000 46,000,000 35,000,000 32,000,000 28,000,000 35,000,000 2 Calcualte the discounted value of project cash flows (value without initial outlay) a. 155,125,325.00 b. 170,891,021.00 C. 174,999,999.00 d 111,824,501.00 3 What is the projects Net Present Value a. 80,125,325.00 b. 95,891,021.00 c. 99,999,999.00 d 104,324,501.00 4 What is the projects Payback Period a. 1.25 Years b. 3.83 Years c. 4.76 Years d 5.76 Years 5 What is the projects Discounted Payback Period a. 2.05 Years b. 4.69 Years c. 5.32 Years d 6.36 Years 6 What is the projects IRR (Internal Rate of Return) a. 30.34% b. 27.32% C. 22.06% d 18.10% 7 If the company uses a reinvestment rate of 10%, calculate the Modified IRR a. 30.34% b. 27.32% 22.06% d 18.10% C. 8 What is the profitability index a. 3.250 b. 2.279 C. 1.750 d 1.250

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