She Investment s Sales revenue Operating costs Depreciation Net worlong Capital spending Year o Yeart Year 2 Year 3 Year 4 42,000 $21.500 $ 22000, 22,500 $ 19 500 4.500 4.600 4.700 3.900 10,500 10,500 10,500 10.500 480 530 580 480 o. Compute the incremental net income of the investment for each year. (Do not round Intermediate calculations.) Year S Year 2 5 Year Year $ Net Income b. Compute the incremental cash flows of the investment for each year Do not round intermediate calculations. Negative artiounts should be indicated by a minus sign) Year Yeart Year 2 Cachow 3 $ Yea 4 c. Suppose the procedicountate is 12 percent What the NPV of the project Do not found intermediate calculations and round your final answer to 2 decimal

Sales revenue Operating costs Depreciation Net working capital spending $21,500 $ $ $ 19,500 4,500 4.600 4,700 3.900 10,500 10,500 10.500 10,500 530 580 480 ? 480 o. Compute the incremental net income of the investment for each year (Do not found intermediate calculations) Year 1 $ Year 2 $ Year 3 $ Year 4 $ Net income b. Compute the incremental cash flows of the investment for each year (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign Year o Yeart Year 2 Cash flow SI S S Yea Year c. Suppose the appropriate discount rate : 12 percent What is the NPV of the project Do not found intermediate calculations and cound your final answer to 2 decimal places (eg. 32.16) NPV CAN W The Best Manufacturing Company is considering a new investment. Financial projections for the westment are tabulated here. The corporate tax rate is 40 percent. Assume all Sales revenue is received in cash, all operating costs and income taxes are paid in cash and all cash flows occur at the end of the year. All networking capital is recovered at the end of the project Year Year Year 2 Year 3 Year 4 42000 Investment Sales revenue 521500 $ 22,000 Operating costs 4.500 4600 4.700 3.900 Depreciation 10.500 10.500 10,500 10.500 Networking capital spending 480 530 580 480 $ 22.500 5 19.500 .. Compute the incrementai net income of the investment for each year (Do not round Intermediate calculations) Ve Year ter Netantom s 5 5 b. Compute the threats cash now of the investment for year. Do not found Intermediate calculation. Negative amounts should be indicated by a mine sol S Pracy 23 Ned Sales revenue Operating costs Depreciation Networking capital spending $ 21,500 5 "$$19.500 4,500 4600 4700 3.900 10,500 10.500 10.500 10,500 530 580 480 480 a. Compute the incremental net income of the investment for each year (Do not round Intermediate calculations.) Year1 Year 2 Year 3 Year 4 Net income $ SI b. Compute the incremental cash flows of the investment for each year. (Do not round Intermediate calculations. Negative amounts should be indicated by a minus sign) Year Year Year 2 S Year $ Year $ Cash flow c. Suppose the appropriate discount rate is 12 percent Wisat is the NPV of the project? Do not round Intermediate calculations and round your final answer to 2 decimal pincel leg.32.16) NAV

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