Question
Question 1. (A) Itifi Corndogs Company has projected a sales volume of $500,250 corndogs for the upcoming third year in business. Operating costs before depreciation
Question 1.
(A) Itifi Corndogs Company has projected a sales volume of $500,250 corndogs for the upcoming third year in business. Operating costs before depreciation normally run at 50% of sales. The depreciation expense on the manufacturing facility, the sausage system and other equipment is $120,000 and the tax rate 32%. The company is unencumbered by debt so no interest expense is owed.
What is operating cash flow?
(B)
NPV Project K costs $54,125, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 12%. What is the project's NPV?
(C) IRR Project K costs $60,125, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 12%. What is the project's IRR? Round to TWO decimal places.
(D) PAYBACK PERIOD Project K costs $54,125, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 12%. What is the project's payback? Round to TWO decimal places.
please do accurate as there no tolarance for wrong answers
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