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The following information is available about an investment opportunity: Initial Capital Expenditure $ 3 Million Annual Sales ( in units ) 1 0 0 ,
The following information is available about an investment opportunity: Initial Capital Expenditure $ Million Annual Sales in units Selling price per unit $ Variable cost per unit $ Project life years Salvage value $ Depreciation Straight line, over life of the project Tax rate WACC Working Capital Initially the project requires an increase in net working capital of $ but it will be recovered after the projects life. Answer the following questions need to show the steps BY HAND NO EXCEL but can use financial calculator: Calculate the projects depreciation expense each year. Calculate the projects the projects cash flows in years and Calculate the projects payback period. Calculate the projects NPV Should the project be implemented? Calculate the projects PI Should the project be implemented? Calculate the projects IRR. Should the project be implemented? Calculate the projects MIRR. Should the project be implemented?
The following information is available about an investment opportunity:
Initial Capital Expenditure $ Million
Annual Sales in units
Selling price per unit $
Variable cost per unit $
Project life years
Salvage value $
Depreciation Straight line, over life of the project
Tax rate
WACC
Working Capital Initially the project requires an increase in net working capital of $ but it will be recovered after the projects life.
Answer the following questions need to show the steps BY HAND NO EXCEL but can use financial calculator:
Calculate the projects depreciation expense each year.
Calculate the projects the projects cash flows in years and
Calculate the projects payback period.
Calculate the projects NPV Should the project be implemented?
Calculate the projects PI Should the project be implemented?
Calculate the projects IRR. Should the project be implemented?
Calculate the projects MIRR. Should the project be implemented?
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