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The following net present value (NPV) is presented to you. Assume all calculations were done correctly. T Year 0 Year 1 Year 2 Year
The following net present value (NPV) is presented to you. Assume all calculations were done correctly. T Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cost (20 500 000) Working capital (1670 000) 1670 000 Operational costs Sales income (22 170 000) (1.300 000) (300 000) 5796 000 6143 760 4496 000 4843 760 11 300 000) 6512 396 5212 305 (1 300 000) (1 300 000) 6903 129 7317316 5603 129 7 694 439 The weighted average cost of capital of the company is 7%. The curent JBAT rate is 10% and cost of equity will be 9%. The company tax rate is 28% What is the discounted factor that will be used in me calculation of the NPV?
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