The company CONES, S.A. By observing the bottleneck generated by its baking phase, you are analyzing the possibility of buying a new oven to solve this problem. The investment required would be 18,000, with a useful life of 4 years and a residual value equal to 10% of the initial investment.

It is estimated that with the new kiln, production and sales would increase considerably. Specifically, sales would grow by 9,000 per year. Costs absorb 50% of sales.

To finance the purchase of the furnace, the current partners are willing to make the necessary contributions provided that the remuneration to be received is 12%; the new shares would be issued at 200% of the par value. The bank with which the company usually works also offers a 4-year loan, at 7% for the necessary amount as long as the current financial structure of the company is maintained (see balance in Annex I), a condition under which the partners also they agree.

The nominal value of the share is 1. All the elements of the fixed assets of CONES, S.A. they are amortized using the straight-line method. The tax rate is 25%.

(ANNEX 1)

Capital	180,000.00
Issue premium	30,000.00
Reserves	345,000.00
Long-term loans	605,000.00
Short-term loans	50,000.00
Suppliers	60,000.00
Total	1,270,000.00

1) Analyze in detail the suitability of the investment through the calculation of its IRR. 2) Detail how the new balance (Liabilities + Equity, with its different components) would look after making the investment