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Quixotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analystonce again will examine the lability of this venture after 3

Quixotic Enterprises is about to embark on another venture. Poncho Sanchos, the faithful financial analystonce again will examine the lability of this venture after 31 failures number of windmills are to be constructed on the southern frontier to generate electricity They will cost $433,000 and will last 10 ears, at which time they will have an estimated salvage value of $28,000However, a capital upgrade of $94,000 will be required he end of five years. An inventory of spare parts ( working capital) amounting to $9,000 will be required during the term of the venture will be housed in a warehouse that is currently not being usedbut which has been used for Quixotic's previous ventures. The warehouse could be rented out at $5,000 per year This enterprise is expected to generate cash from the sale of electricity of $142,000 a year for 10 years Cash expenses for each of the 10 years will be $12,000. The company's tax rate is 22 percent, the CCA rate is 5 percent and the cost of capital is 16 percent Requirements: A. Calculate the Net Present Value of the Windmill venture by completing the table below (You need a number every cell in this spreadsheet ) Event Expected Cash Flow After-tax Cash Flow Present Value Enter receipts es positive numbers payments negative numbers Round your to places Inital Investment Working Capital Revenues Expenses Opportunity Cost Capital Upgrade Salvage Working Revcovery CCA Tax Shield Net present value N A NA NA NA It's not worth any marks , but it helps with the marking what number did you use for Cpv -Spv ?

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