please calculate FCF for 5 years
(Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 30 percent marginal tax bracket with a required rate of return or discount rate of 11 percent is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then because this is somewhat of a fad product, it will be terminated. Given the following information, determine the tree cash flows associated with the project, the project's net present value the profitability index, and the Internat rate of return. Apply the appropriate decision criteria a. Determine the free cash flows associated with the project The FCF in year is $ 15000000 (Round to the nearest dollar) The FCF in year 1 is $. (Round to the nearest dollar) Data Table - Question Help 30 percent marginal tax bracket Foject is expected to last 5 years and ith the project, the project's net (Related to Checkpoint 12.1) (co with a required rate of return or disc then, because this is somewhat of present value, the profitability Index a. Determine the free cash flows a The FCF in year is $ 15000000 The FCF in year 1 is $. (Round Cost of new plant and equipment: Shipping and installation costs Unit sales: $14,600,000 $210,000 Year 1 2 3 Units Sold 75,000 110,000 110,000 85.000 75,000 Sales price per unit: Variable cost per unit Annual fixed costs: Working-capital requirements $340/unit in years 1 through 4. $290/unit in year 5 $160/unit $800,000 There will be an initial working capital requirement of $190,000 to get production started. For each year, the total investment in net working capital will be equal to 14 percent of the dollar value of sales for that year. Thus. the investment in working capital will increase during years 1 through 3. then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5. Use the simplified straight-line method over 5 years. It is The depreciation method Enter your answer in the answer Print Done 2 Question Help Data Table 1 30 percent marginal tax bracket hoject is expected to last 5 years and th the project, the project's net WAL Unit sales: VET. (Related to Checkpoint 12.1) (ca with a required rate of return or disc then, because this is somewhat of present value, the profitability index a. Determine the free cash flows a The FCF in year is $ 15000000 The FCF in year 1 is $ (Round Sales price per unit Variable cost per unit Annual fixed costs: Working capital requirements: Year Units Sold 1 75.000 2 110,000 3 110,000 4 85,000 5 75,000 $340/unit in years 1 through 4, 8290/unit in year 5 $160/unit $800.000 There will be an initial working capital requirement of $190,000 to get production started. For each year, the total investment in networking capital will be equal to 14 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5. Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have no salvage value after 5 years. The depreciation method Enter your answer in the answer Print Done Determine the free cash flows asociated with the project The FCF in year is? The FCF in year 1 is? The FCF in year 2 is? The FCF in year 3 is? The FCF in year 4 is ? The FCF in year 5 is? b. The net present value (NPV) of the project is? The profitability index (PI) of the project is? d. The internal rate of return (IRR) of the project is? C
