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Remaining Time: 1 hour, 07 minutes, 38 seconds. Question Completion Status Pringles Chips is considering to start a new production plan that will improve production

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Remaining Time: 1 hour, 07 minutes, 38 seconds. Question Completion Status Pringles Chips is considering to start a new production plan that will improve production officiency The plan requires a machine that costs $1.000.000 and will be used for four years. The machine follows straight line depreciation over year period and reach zero vale after eight years I Pringles sell the machine after 4 year of completing the plan, the salvage value of the machine at year 3000.000 You by year, the plan will improve sales by $200.000 every year for the next four years. That is sale increases by $200,000 in year 1. $400.000 in year 2.5600.000 in year 3 and 5800 000 in year 4 The plan will require an initial networking capital of $50,000 that will be recovered at the end of the plan the tax rate is 10% and discount rate is 12%, calculate the NPV and RR of this plan by filling up the following blanks. Keep your answers in 2 decimal places Year OCH Change in WC Net capital spending CFFA NPY RRE SONY Remaining Time: 1 hour, 07 minutes, 38 seconds. Question Completion Status Pringles Chips is considering to start a new production plan that will improve production officiency The plan requires a machine that costs $1.000.000 and will be used for four years. The machine follows straight line depreciation over year period and reach zero vale after eight years I Pringles sell the machine after 4 year of completing the plan, the salvage value of the machine at year 3000.000 You by year, the plan will improve sales by $200.000 every year for the next four years. That is sale increases by $200,000 in year 1. $400.000 in year 2.5600.000 in year 3 and 5800 000 in year 4 The plan will require an initial networking capital of $50,000 that will be recovered at the end of the plan the tax rate is 10% and discount rate is 12%, calculate the NPV and RR of this plan by filling up the following blanks. Keep your answers in 2 decimal places Year OCH Change in WC Net capital spending CFFA NPY RRE SONY

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