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Please show all formulas and calculations - Thanks Calculate the NPV of the following 7yr project Project Life in yrs 7 Year 1 2 3
Please show all formulas and calculations - Thanks
Calculate the NPV of the following 7yr project
Project Life in yrs | 7 | Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | ||
Sales Forecast | $ 8,250,000 | Growth Rates for Sales | 17.25% | 15.80% | 13.45% | 14.20% | 11.60% | 10.90% | |||
COGS as % of Sales | 52.50% | Sales | |||||||||
Cap Invest | $ 9,000,000 | Cogs | |||||||||
Salvage Value | $ 1,750,000 | Depr | |||||||||
Beg NWC | $ 470,000 | EBIT | |||||||||
NWC as % of Sales | 1.05% | Taxes | |||||||||
WACC | 10.75% | Net Income | |||||||||
Tax Rate | 41.00% | ||||||||||
Rental Option/yr | $ 55,000 | ||||||||||
Year | 0 | ||||||||||
OCF | |||||||||||
Life for Depr | 9.00 | Cap Invest | |||||||||
Depr per yr | $ 1,000,000 | NWC | |||||||||
Book Value at End | $ 2,000,000 | Salvage Value | |||||||||
Opportunity Cost | |||||||||||
FCF | |||||||||||
NPV |
Project Lite in yrs Sales Forecast COGS as of Sales Cap Invest Salvage Value Beg NWC NWC as of Sales WACC Tax Rate Rental option/yr Life for Depr Depr per yr Book Value at End Year 8,250,000 Growth Rates for Sales 17.25% 15.80% 13.45% 14.20% 11.60% 10.90% 52.50% Sales 9,000,000 Cogs 1,750,000 Depr EBIT 470,000 1.05% Taxes 10.75% Net Income 41.00% 55,000 Year OCF 9.00 Cap Invest 1,000,000 NWC 2,000,000 Salvage Value Opportunity Cost FCF NPV
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