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Save Homework: HW8 Chapter 12 Score: 0 of 20 pts P12-22 (algorithmic) 4 of 4 (0 complete) HW Score: 0%, 0 of 66 pts Question

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Save Homework: HW8 Chapter 12 Score: 0 of 20 pts P12-22 (algorithmic) 4 of 4 (0 complete) HW Score: 0%, 0 of 66 pts Question Help (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 12 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 is determine the free cash flows associated with the project, the project's not present value the profitability Index, and the internal rate of return. Apply the appropriate decision on 0 Data Table a. Determine the free cash flow cated with the project The FCF in year is 5 Round to the nearest dolar) Cost of new plant and equipment $14.500.000 Shipping and installation costs $180,000 Unit sales: Year Units Sold 135.000 135.000 75.000 66.000 Enter your answer in the answer box and then click Check Answer Sales price per unit: Variable cost per unit Annual food costs: Working-capital requirements $330/unit in years 1 through 4, $280/unit in year 5 $180/unit $750,000 There will be an initial working capital requirement of $180,000 to get production started. For each year, the total investment in not working capital will be equal to 9 parts 9 remaining Save Homework: HW8 Chapter 12 Score: 0 of 20 pts 4 of 4 (2 complete) P12-22 (algorithmic) HW Score: 9.09%, 6 of 66 pts Question Help (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 12 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, determine the free cash flows associated with the project, the project's not present value, the profitability index, and the internal rate of return. Apply the appropriate decision criteria wda. Determine the free cash flows associated with the project. int The FCF in year is $ (Round to the nearest dollar.) no Enter your answer in the answer box and then click Check Answer o parts Clear All Check Answer remaining mework: HW8 Chapter 12 e: 0 of 20 pts 4 of 4 (2 complete) HW Score: 9.09%, 6 of -22 i Data Table lated porat proj derir le thi: fed w mewhe Cost of new plant and equipment: Shipping and installation costs: Unit sales: $14,600,000 $180,000 projel eria. Year Deter e FCF OWN Units Sold 65,000 135,000 135,000 75,000 65,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working capital requirements: $330/unit in years 1 through 4, $280/unit in year 5 $180/unit $750,000 There will be an initial working capital requirement of $180,000 to get production started. For each year, the total investment in not working capital will be equal to 9 nonnant of the dalam wakin olenne farthaluar Thue ter you Print Done parts remal Data Table 75,000 65,000 Sales price per unit: Variable cost per unit: Annual fixed costs: Working-capital requirements: $330/unit in years 1 through 4, $280/unit in year 5 $180/unit $750,000 There will be an initial working capital requirement of $180,000 to get production started. For each year, the total investment in net working capital will be equal to 9 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 capital is liquidated at the termination of the project at the end of year 5. Use the simplified straight-line method over 5 years. It is assumed that the plant and equipment will have no salvage value after 5 years. The depreciation method: Print Done

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