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Task Sensys AB is considering a new capital budgeting pro t that will last for three years Sensys plans on using a cost of capital

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Task Sensys AB is considering a new capital budgeting pro t that will last for three years Sensys plans on using a cost of capital of 3% to evaluate this project Sensys has also capital expenditures of 90 000 which will be depreciated straight-line over 3 years Based on extensive research, it has prepared the following incremental cash flow projections Year Sales (Revenues) 100,000 100,000 100,000 Cost of Goods Sold (50% of Sales) Depreciation = EBIT -Taxes (35%) 50,000 50,000 50,000 30,000 30 000 30,000 20,000 20,000 20,000 7,000 7,000 7,000 13,000 13 000 13,000 unlevered net income The project requires an increase of working capital by 4000 in year 1 and a further increase of working capital by 4000 in year 2 The entire working capital will be recovered in year 3 a. The free cash flow for the first year of Sensys' project is (round to full number, if negativ use - don't enter, as thousand separator) b. The free cash flow for the last year of Sensys' project is (round to full number, if negativ use don't enter, as thousand separator) c. The NPV for Sensys' project is (round to full number, if negativ use -, don't enter, as thousand separator) d. The IRR of Sensys' project is %, (round to two decimals)

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