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please help solve ,its corporate finance Question 1 Not yet answered Marked out of 6.00 P Flag question You are starting a project to extend
please help solve ,its corporate finance
Question 1 Not yet answered Marked out of 6.00 P Flag question You are starting a project to extend your producing capacities. Undertaking the project means TEUR 400 cash- out-flow related to fixed assets today which you can linearly depreciate in eight years. Your estimated yearly sales for the next year is 500 TEUR. In the coming years your sales will grow by 50 on a yearly basis. Your current costs are 60% of your sales. At the end of the fifth year you sell your fixed assets at a price of TEUR 180. To start the project, you also need a kick-off inventory of TEUR 50. In the coming years, the level of inventory will be 10% of the estimated sales which has to be available at the beginning of the year. You pay by cash to your suppliers and so do your customers. In the fourth year you sell your inventory for TEUR 130. The corporate tax rate equals 20%. You are financing your company only by equity. Calculate the cash flow of your company! There are six true sentences below, find them! (But you can only choose six!)Step by Step Solution
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