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The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the

The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipments cost. The annual EBIT for this new project will be 18% of the projects cost. Your calculations that convert the projects EBIT to free cash flow for the 12 years of the project.

Here's a draft of my bit on depreciation of the new project.

Property, Plant and Equipment, net (in millions)
Sep-18
Land 46.8
Buildings 557.3
Leasehold Improvements 7372.8
Store Equipment 2400.2
Roasting Equipment 658.8
Furniture, fixtures and other 1659.3
Work in Progress 501.9
Property, plant and equipment gross 13197.1
Accumulated Depreciation -7268
Property, plant and equipment , net 5929.1
Investment in New Project
Investment Amount (10% of Net Property, Plant & Equip.) 592.91
Estimated Life 12 years
Salvage Value 5%
EBIT 18% 106.72
Tax Rate 35%
Annual Depreciation Calculations
Cost of Investment 592.91
Salvage Value 29.65
Depreciable cost 563.26
Depreciation Rate Per Year 8%
Annual Depreciation 46.94

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