Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 2 (22 points): The Hua Bei Autonomous Electric Car Manufacturing Company is considering an expansion. The sports car division has a new 2

image text in transcribed

Part 2 (22 points): The Hua Bei Autonomous Electric Car Manufacturing Company is considering an expansion. The sports car division has a new 2 door version they think will increase after tax cash flow by (CNY) 610,000 a year for a ten year period. The company's weighted average cost of capital (WACC) is 4.5%. The company is borrowing from a US bank and the project has an initial cost of $653,500 (USD). Exchange rate is: 1 CNY 0.14457 USD. What is the Payback, Net Present Value and Internal Rate of Return for this project? Report in CNY. I

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Belverd E. Needles, Marian Powers

11th edition

1133769314, 053847601X, 9781133715023, 978-1133769316, 1133715028, 978-0538476010

More Books

Students also viewed these Accounting questions