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The feasibility study of a project estimates that it is possible to produce and sell 9 0 , 0 0 0 annual units of a
The feasibility study of a project estimates that it is possible to produce and sell annual units of a product at $ each during the first three years and $ from the fourth year onwards. Sales projections show that from the sixth onwards these could increase by
The following investments are required, for a volume of units:
Land $
Buildings $
Machinery $
The growth of production to satisfy the increase in sales would require investing $ in additional buildings and $ in machines.
The unit manufacturing costs are: Labor $; materials of $ and indirect costs of $
Fixed manufacturing costs are estimated at $ The expansion of installed capacity will increase them by
Administration and sales expenses are estimated at of sales.
Sales commission expenses are of sales.
The legislation allows buildings to be depreciated in years and machines in years, according to the Sum of the Useful Life of the Asset Digits Method.
Intangible assets are amortized on a straightline basis over five years.
Startup expenses amount to $ which includes the cost of the feasibility study, which is $
The investment in working capital is estimated at the equivalent of six months of the total disbursable cost.
The income tax rate is
To finance the project, a loan is requested for of the investment in fixed assets Land machines, facilities for a year term, with an annual interest rate of Fixed fee.
The minimum rate of return required by the investor is per year.
YOU ARE REQUESTED TO DO THE FOLLOWING:
Depreciation table for fixed assets.
Credit amortization table.
Construction of the project's cash flow, for its first years of life.
Evaluate the project flow, according to NPV IRR, PR PRA, IR
Note: Solve all bits by numbering each bit correctly and in english
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