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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

  1. 10% expansion of 12,502 property plant and equipment (PPE)=
  2. Life of PPE @ 12 years and salvage cost of 5%of ppe cost
  3. Annual EBIT @18%=
  4. 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

Project Life

12 years

10% Expansion Investment

Property Cost

Salvage Cost

5%

Depreciation Asset

EAT + dep EBIT-50%

SLM Accumulated Depreciation p/yr 1250.20-62.51/12

EBIT: 12502 * 18%

New EBIT 225.36 *35%

Expected return

10%

Hurdle Rate (WACC)

Free Cash Flow

Capital Budgeting:

NPV-net present value

IRR-internal rate of return

DPP- discounted payback period

ebit is 18% of thr projects cost

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