Question
Please calculate following variables 10% expansion of 12,50 2 property plant and equipment (PPE)= Life of PPE @ 12 years and salvage cost of 5%
Please calculate following variables
- 10% expansion of 12,502 property plant and equipment (PPE)=
- Life of PPE @ 12 years and salvage cost of 5%of ppe cost
- Annual EBIT @18%=
- SLM @ 35%tax rate
Please Calculate:
1.EBIT to free flow for 12 years =
2. npv=
3. internal rate of return=
4. discounted payback period=
PROPERTY PLANT & EQUIPMENT | 12502.00 |
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Project Life |
| 12 years |
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10% Expansion Investment |
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Property Cost |
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Salvage Cost |
| 5% |
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Depreciation Asset |
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EAT + dep EBIT-50% |
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SLM Accumulated Depreciation p/yr 1250.20-62.51/12 |
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EBIT: 12502 * 18% |
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New EBIT 225.36 *35% |
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Expected return |
| 10% |
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Hurdle Rate (WACC) |
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Free Cash Flow
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Capital Budgeting: |
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NPV-net present value |
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IRR-internal rate of return |
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DPP- discounted payback period |
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