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Quixotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analyst. once ogain will examine the viability of this venture after

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Quixotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analyst. once ogain will examine the viability of this venture after 31 failures. A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost $435.000 and will last 11 years, ot which time they will have an estimated solvage value of $24,000. However, o capital upgrade of $99.000 will be required at the end of five years. An inventory of spare parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse thot is currently not being used, but which hos been used for Quixotic's previous ventures: The warehouse could be rented out at $4.000 per year. This enterprise is expected to generote cash from the sale of electricity of $154,000 oyear for 11 years, Cash expenses for each of the 11 years will be $8,000. The company's tex rate is 23 percent, the CCA rate is 6 percent and the cost of cepital is 16 percent: Requirements: A. Calculate the Net Present Value of the Windmill venture by completing the table below: pou need a number for every celf in this spreadsheet.) A Calculate the Net Present Value of the Windmill venture by completing the toble below. Nou need a number for every cell int this spreadisheet) B. it's not worth ony marks, but it helps with the marking: what number did you use for (Cpv - Spv)? (Enter your answer as a positive number) C. Should Quixotic dream the impossible dream and invest in the Windmill venture

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