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The following information is available about an investment opportunity. Investments will occur at time 0 and will commence at time 1. Initial cost-28 million Unit
The following information is available about an investment opportunity. Investments will occur at time 0 and will commence at time 1. Initial cost-28 million Unit Sales-400,000 Selling price per unit, this year-$60.00 Variable cost per year, this year-$42.00 Life expectancy-8 years Salvage value-0 Depreciation-straight line tax rate-37% nominal discount rate-10% real discount rate-10% inflation rate-0% 1) prepare a spreadsheet to estimate the projects annual after tax cash flows 2) calculate the investments IRR and NPV
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