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Please help me with this question! The question is included below. MACRS Fixed Annual Expense Percentages by Recovery Class Year 3-Year 5-Year 7-Year 10-Year l-

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Please help me with this question! The question is included below.

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MACRS Fixed Annual Expense Percentages by Recovery Class Year 3-Year 5-Year 7-Year 10-Year l- _ m m m m lI- Project cash ow and NPM The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,100,000 and will be depreciated using a ve-year MACRS life, a . The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 240 Year four: 360 E. Year two: 270 Year ve: 310 Year three: 360 If the sales price is $30,000 per car, variable costs are $17,000 per car, and xed costs are $1,300,000 annually, what is the annual operating cash ow if the tax rate is 30%? The equipment is sold for salvage for $500,000 at the end of year ve. Net working capital increases by $600,000 at the beginning of the project (year 0) and is reduced back to its original level in the nal year. Find the internal rate of return for the project using the incremental cash ows

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