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PC Ltd is considering a new investment whose data are shown below. The project will run for 3 years. The asset would be depreciated on
PC Ltd is considering a new investment whose data are shown below. The project will run for years. The asset would be depreciated on a straightline basis over the project's year life, would have a zerosalvage book value and $ market value. The working capital need is $ for the entire project that will be invested at t and would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV and IRR and PI WACC weighted average cost of capital Net investment in fixed assets basis $ Required new working capital $ Straightline depreciation rate Sales revenues, each year $ Operating costs excluding depreciation each year $ Tax rate i The terminal cash flow at the end of the project is Show your detailed calculations a $approximately b $approximately c $approximately d $approximately e None of the above Marks ii NPV of the project is Show your detailed calculations a $approximately b $approximately c $approximately d $approximately e None of the above
PC Ltd is considering a new investment whose data are shown below. The project will run
for years. The asset would be depreciated on a straightline basis over the project's year
life, would have a zerosalvage book value and $ market value. The working capital need
is $ for the entire project that will be invested at t and would be recovered at the end
of the project's life. Revenues and other operating costs are expected to be constant over the
project's life. What is the project's NPV and IRR and PI
WACC weighted average cost of capital
Net investment in fixed assets basis $
Required new working capital $
Straightline depreciation rate
Sales revenues, each year $
Operating costs excluding depreciation each year $
Tax rate
i The terminal cash flow at the end of the project is Show your detailed calculations
a $approximately
b $approximately
c $approximately
d $approximately
e None of the above Marks
ii NPV of the project is Show your detailed calculations
a $approximately
b $approximately
c $approximately
d $approximately
e None of the above
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