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Please answer 1-5 in format 1) 2) 3) 4) 5) Intro It is the end of 2022. You're a financial analyst working for Tesla Motors.
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Intro It is the end of 2022. You're a financial analyst working for Tesla Motors. The company is considering producing the new Model Z car and is predicting the following sales $ million). Assume all cash flows occur at the end of the year. B D E 1 2024 2025 2026 2027 2 Sales 150 195 234 | 257.4 COGS and SG&A are expected to add up to 70% of sales. After 2027, production will end and the factory will shut down. To start production at the beginning of 2024, Tesla has to invest $200 million now and $100 million in 2023 to build a new factory. After completion at the end of 2023, the factory can be depreciated straight to zero over 10 years. The factory is expected to be worth $100 million at the end of 2027. Net working capital consists mainly of inventory of car components, minus some current liabilities. Net working capital is expected to be always 15% of sales, until the last year of the project when it will all be recouped. Tesla has a weighted average cost of capital of 10% and a marginal tax rate is 22%. 18 | Attempt 5/10 for 10 pts. Part 1 Open a spreadsheet with a blank tab and name it CF', for cash flows. Duplicate the table above and extend it to find the operating cash flow for each year. What is the operating cash flow for 2027 (in $ million)? 0+ decimals Submit Part 2 Extend the spreadsheet to find net capital spending for each year. What is net capital spending for 2027 (in $ million)? Include the after-tax salvage value of the factory and enter it with the correct sign. 0+ decimals Submit Part 3 B Attempt 2/10 for 10 pts. Extend the spreadsheet to find the change in net working capital for each year. What is the change in net working capital for 2027 (in $ million)? 1+ decimals Submit Part 4 IB Attempt 1/10 for 10 pts. Extend the spreadsheet to find the cash flow from assets for each year. What is the CFA for 2027 (in $ million)? 0+ decimals Submit IB | Attempt 3/10 for 10 pts. Part 5 What is the NPV of the project (in $ million)? Intro It is the end of 2022. You're a financial analyst working for Tesla Motors. The company is considering producing the new Model Z car and is predicting the following sales $ million). Assume all cash flows occur at the end of the year. B D E 1 2024 2025 2026 2027 2 Sales 150 195 234 | 257.4 COGS and SG&A are expected to add up to 70% of sales. After 2027, production will end and the factory will shut down. To start production at the beginning of 2024, Tesla has to invest $200 million now and $100 million in 2023 to build a new factory. After completion at the end of 2023, the factory can be depreciated straight to zero over 10 years. The factory is expected to be worth $100 million at the end of 2027. Net working capital consists mainly of inventory of car components, minus some current liabilities. Net working capital is expected to be always 15% of sales, until the last year of the project when it will all be recouped. Tesla has a weighted average cost of capital of 10% and a marginal tax rate is 22%. 18 | Attempt 5/10 for 10 pts. Part 1 Open a spreadsheet with a blank tab and name it CF', for cash flows. Duplicate the table above and extend it to find the operating cash flow for each year. What is the operating cash flow for 2027 (in $ million)? 0+ decimals Submit Part 2 Extend the spreadsheet to find net capital spending for each year. What is net capital spending for 2027 (in $ million)? Include the after-tax salvage value of the factory and enter it with the correct sign. 0+ decimals Submit Part 3 B Attempt 2/10 for 10 pts. Extend the spreadsheet to find the change in net working capital for each year. What is the change in net working capital for 2027 (in $ million)? 1+ decimals Submit Part 4 IB Attempt 1/10 for 10 pts. Extend the spreadsheet to find the cash flow from assets for each year. What is the CFA for 2027 (in $ million)? 0+ decimals Submit IB | Attempt 3/10 for 10 pts. Part 5 What is the NPV of the project (in $ million)Step by Step Solution
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