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QUESTION 20 Note: Question (16)-(22) are sharing the same information What are the after-tax gains from selling the equipment at Year 3? 0 Nea After-tax

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QUESTION 20 Note: Question (16)-(22) are sharing the same information What are the after-tax gains from selling the equipment at Year 3? 0 Nea After-tax sale gains QUESTION 21 Note: Question (161-22) are sharing the same information Complete the FCF calculations 0 Year INOPLAT Depreciation Increase in MWC CAPEX After sale gains FOF QUESTION 22 Question (161-22, are sharing the same information) What is the NPV of this investment? Should Qualcomm make this investment? for the toolbar, press ALT-F10 (PC) Or ALT-FN-F10 (Mac). BI. Paragraph 14px X x, The 11 Arial !!! 11 A v " Note: Question (169022) are sharing the same information Qualcomm Inc is evaluating the mass production of a new processor. The company requires 5400M for new equipment. This equipment will experience straight Ine depreciation over 8 years after years, the book value of this equipment becomes zero) Qualcomm inc expects an EBIT of $80M during the first year of production (1) which will grow at a rate of 15% each year. After 3 years, the company plans to sell the equipment for $350M The corporate tax rate is 20% and the appropriate discount rate for this project is 23 The project requires 525M of inventory today it). The required amount will grow at 20% each year, Accounts payable is zero today but increases to $3M in Year 1 and stays the same during the project. Write numbers in 5 millionslet in case of 530M, just write 30). What are the values for EBIT & NOPLAT each year, as a result of adopting this project? Ves 0 EBIT NOPLAT

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