Project cash flow and NPV.The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of

$3,900,000

and will be depreciated using a five-year MACRS life,

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The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows:

Year one:250		Year four:360
Year two:280		Year five:330
Year three:350

Year three: 350

If the sales price is

$30,000

per car, variable costs are

$16,000

per car, and fixed costs are

$1,200,000

annually, what is the annual operating cash flow if the tax rate is

30%?

The equipment is sold for salvage for

$500,000

at the end of year five. Net working capital increases by

$500,000

at the beginning of the project (year 0) and is reduced back to its original level in the final year. Find the internal rate of return for the project using the incremental cash flows.

(Please find the annual operating cash flow of the project for years 1-5 and answer the questions in the text) (also, year 1 cash flow is not 1,074,000. i tried that and got it wrong.

Par Project cash flow and NPV. The managers of Classic Autos incorporated plan to manufacture danse Thunderbird (1957) The necessary foundey equipment will cost a total of $3.900.000 and will be depreciated using a five year MACRS . The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follow Your 250 Year out 360 Year tv 330 Yearthye 350 the price is $30,000 per car, variations are 16.000 per cand fred costa are 51,200,000 musly what is the operating cash flow the tax rate is 3087 The equipment is sold for salvage for SSC0.000 at the end of year five Networking capital increases by $500.000 at the beginning of the project year and is reduced back to its original level in the final you. Find the internal rate of retum for the project using the incremental cash fowe Yeartwo 200 First, what is the annual operating cash flow of the project for year 12 Round to the nearest dolar) plan Icture classic Thunderbirds (1957 replicas). The necessary foundry Data Table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table ta LE Year 1 N 3-Year 33.33% 44.45% 14.81% 7.41% 3 5-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 4 5 6 7 on 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% 8 9 10 11 Print Done