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Save Homework: Chapter 12 Homework Score: 0 of 4 pts 5 of 5 (4 complete) HW Score: 75%, 12 of 16 pts P12-22 (similar to)
Save Homework: Chapter 12 Homework Score: 0 of 4 pts 5 of 5 (4 complete) HW Score: 75%, 12 of 16 pts P12-22 (similar to) Question Help O (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 33 percent marginal tax bracket with a required rate of return or discount rate of 11 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product, it will be terminated. Given the following information, E:determine the free cash flows associated with the project, the project's net present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria. a. Determine the free cash flows associated with the project. Homework: Chapter 12 Homework Say Score: 0 of 4 pts 5 of 5 (4 complete) HW Score: 75%, 12 of 16 P12-22 (similar to) Question Help 0 Data Table (Related to Checkpoint 12.1) (Comprehensive probler of 11 percent, is considering a new project. This project in following information, determine the free cash flows Fax bracket with a required rate of return or discount rate t of a fad product, it will be terminated. Given the y the appropriate decision criteria. Cost of new plant and equipment: Shipping and installation costs: Unit sales: $14,000,000 $210,000 a. Determine the free cash flows associated with the proje The FCF in year O is $ . (Round to the nearest dollar.) Year Units Sold 75,000 110,000 110,000 85,000 75,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working-capital requirements: $290/unit in years 1 through 4, $240/unit in year 5 $120/unit $750,000 There will be an initial working capital requirement of $210,000 to get production started. For each year, the total investment in net working capital will be equal to 13 percent of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working canitalic liquidated at the termination of the Enter your answer in the answer box and then click Chl Print Done 9 parts remaining Check
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