Question
Quickly please .... I'll give you straight like Intel is considering making a new investment of $ 1000 in a new chip producing facility and
Quickly please .... I'll give you straight like
Intel is considering making a new investment of $ 1000 in a new chip producing facility and has come with the following estimated revenues are 1450 , operating expenses 500, depreciation $250 per year. The project will end after four years, the marginal tax rate is 40% and the cost of capital for Intel is 0.06.
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1- Now assume that this project will require Intel to maintain working capital at 20% of revenues occurring at the beginning of each year and the working capital being recovered at the end. Estimate the new initial investment.
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2- Estimate the net present value of the project with the working capital.
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