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please show all work in EXCEL including formulas. thank you in advance! will upvote once all finished (1-5) of the same question. you are mvp!
please show all work in EXCEL including formulas. thank you in advance! will upvote once all finished (1-5) of the same question. you are mvp!
Consider the following project being evaluated by your company: - Initial price of the asset is $230,000 will require $20,000 transportation and $5,000 installation. - Will be depreciated S/L over 6 years to zero salvage. - Market value for the asset at end of 5 years is expected to be $50,000 (the asset will be operated for only 5 years) - Net investment in NWC in year 0 (at the initial period) of $30,000 - Sales, first year, expected to be generated by the project $100,000 - Annual cost of goods sold 60% of sales - Annual sales growth rate 4% - Marginal tax rate 30\% - Cost of capital 10% 1) Calculate the depreciable base for the asset. 2) Calculate the project's cash outflow in year 0 (Initial outlay) 3) Calculate Annual operating cash flows for year 1-5 (OCF) 4) Calculate the asset's after-tax salvage in year 5. 5) Calculate the project's internal rate of return (IRR) Check points: Nl in year 2=(630) loss NPV=(74,265.51) Bonus: What is the 2ne year depreciation tax shield Step by Step Solution
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