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project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number TomTom Industries is analyzing an average-risk

image text in transcribed project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number

TomTom Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant. but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. No change in net operating working capital would be required. This is just one of many projects for the firm. so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC or the cost of capital Net investment cost (depreciable basis) The salvage value of its equipment No other fixed assets will be acquired for following years Units sold (constant through years) Average price per unit, Year I Fixed operating cost. exclude depreciation (constant through years) Variable operating cost per unit. Year I Variable operating cost and average price per unit increase every year at inflation rate Annual depreciation rate Expected inflation rate per year Tax rate 0 9.coo.cco 0 55.356 0 73.687 0 135.327 1500% $500,000 so 25.000 $25.00 $150,000 $7.50 33.33%

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