Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show how to do in excel! Zine Corporation is in the besiness of manuficturing pars for cars and is expanding ies busiecss in USA:
please show how to do in excel!
Zine Corporation is in the besiness of manuficturing pars for cars and is expanding ies busiecss in USA: The conyany is coesideriag an additional plant in Alabama The following information has beel The initial investment required is USD 2 maltion. Inflation in US is projected to be 3% fee neat 5 years. The maximua plant capscity is 3.000,000 unitu per year. The variable costs will increase by rave of intlation is US. The variable costs for the year 1 in USD 8 . The sales and general expenses are expected to be 10% of the toeal wales. The investment in Plant and equipment is USD 15milli. It will be fally depreciated in 5 years. The US copporate tax rase is 35%. The changes to net egerating working capital is 35% of sales revenue. The phant will experience so adilitional capital expenditure, The interest expenses is 5150 dooy The project will be terminated in Year 5 . The terminal value of the project in the present value of perpetial free cashillow in the Sth year . The growth rate in cach flow is assumed to be rero. The WacC Calkuane the NPV for the project. Zine Corporation is in the besiness of manuficturing pars for cars and is expanding ies busiecss in USA: The conyany is coesideriag an additional plant in Alabama The following information has beel The initial investment required is USD 2 maltion. Inflation in US is projected to be 3% fee neat 5 years. The maximua plant capscity is 3.000,000 unitu per year. The variable costs will increase by rave of intlation is US. The variable costs for the year 1 in USD 8 . The sales and general expenses are expected to be 10% of the toeal wales. The investment in Plant and equipment is USD 15milli. It will be fally depreciated in 5 years. The US copporate tax rase is 35%. The changes to net egerating working capital is 35% of sales revenue. The phant will experience so adilitional capital expenditure, The interest expenses is 5150 dooy The project will be terminated in Year 5 . The terminal value of the project in the present value of perpetial free cashillow in the Sth year . The growth rate in cach flow is assumed to be rero. The WacC Calkuane the NPV for the project Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started