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pleeeeeeeeeease solve it quickly, heelllp For the following problems, unless stated otherwise, you may assume that the cost of land, L, and the salvage value,
pleeeeeeeeeease solve it quickly, heelllp
For the following problems, unless stated otherwise, you may assume that the cost of land, L, and the salvage value, S, of the plant are both zero. 1. The projected costs for a new plant are given below (all numbers are in $10%): Land Cost = $5 Fixed Capital Investment = $100 ($60 at end of year 1 and $40 at end of year 2) Working Capital = $30 (at start-up) Start up at end of year 2 Revenue from sales = $35 Cost of manufacturing (without depreciation) = $13 Tax rate = 35% Depreciation method = Current MACRS (see Problem 4.18) Length of time over which profitability is to be assessed = 10 years after start-up Internal rate of return = 8 % pa. For this project, do the following: a. Draw a cumulative (nondiscounted) after-tax cash flow diagram. b. From Part a, calculate the following nondiscounted profitability criteria for the project: (i) cumulative cash position and cumulative cash ratio (ii) payback period (iii) rate of return on investment c. Draw a cumulative (discounted) after-tax cash flow diagram. d. From Part c, calculate the following discounted profitability criteria for the project: (i) net present value and net present value ratio (ii) discounted payback period (iii) discounted cash flow rate of return (DCFROR) For the following problems, unless stated otherwise, you may assume that the cost of land, L, and the salvage value, S, of the plant are both zero. 1. The projected costs for a new plant are given below (all numbers are in $10%): Land Cost = $5 Fixed Capital Investment = $100 ($60 at end of year 1 and $40 at end of year 2) Working Capital = $30 (at start-up) Start up at end of year 2 Revenue from sales = $35 Cost of manufacturing (without depreciation) = $13 Tax rate = 35% Depreciation method = Current MACRS (see Problem 4.18) Length of time over which profitability is to be assessed = 10 years after start-up Internal rate of return = 8 % pa. For this project, do the following: a. Draw a cumulative (nondiscounted) after-tax cash flow diagram. b. From Part a, calculate the following nondiscounted profitability criteria for the project: (i) cumulative cash position and cumulative cash ratio (ii) payback period (iii) rate of return on investment c. Draw a cumulative (discounted) after-tax cash flow diagram. d. From Part c, calculate the following discounted profitability criteria for the project: (i) net present value and net present value ratio (ii) discounted payback period (iii) discounted cash flow rate of return (DCFROR)
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