The necessary foundry equipment will cost a total of $4,500,000 and will be depreciated using a five year MARCS life, ? the sales manager has an estimate for the sale of classic Thunderbirds, the annual sales volume will be as follows; ? Year one: 230. Year two: 280. Year three: ?320 Year four: 380Year five: 320? If the sales price is 28,000 per car, variable cost are 16,000 per car, and fixed cost are 1,200,000 annually what is the annual operating cash flow at the tax rate is 30%? The equipment is sold for salvage for $500,000 at the end of year five. Networking capital increases by $600,000 at the beginning of the project year 0 and is reduced back to its original level in the final year. Find the internal rate for the project using the incremental cash flows.

i6 Wew an example Project cash ow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,500,000 and will be depreciated using a ve-year MACRS life, a . The sales manager has an estimate tor the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 230 Year four: 380 la; Year two: 280 Year ve: 320 Year three: 320 if the sales price is $28,000 per car, variable costs are $16,000 per car, and xed costs are $1,200,000 annually, what is the annual operating cash flow it year live. Net working capital increases by $600,000 at the beginning of he internal rate of return for the project using the incremental ash ows. the tax rate is 30%? The equipment' is sold for salvage for $500,000 at the end of the project (year 0) and is reduced back to its original level in the nal year. Find t Data table First. what is the annual operating cash flow of $D (Round to the nearest dollar.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon :11 to download the data from this table 33.33% 7 7 ' ' 7 10.00% 44.45% 32.00% . 13.00% 19.20% . 14.40% 14.81% 11.52% 11 52% Get more help