Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The two-person electric car manufacturing company needs a new facility. The new facility is planned to be completed in 2 years and ready for production.

image text in transcribed

The two-person electric car manufacturing company needs a new facility. The new facility is planned to be completed in 2 years and ready for production. As initial land expense 1.5 million TL is required. The total cost of the building construction is 10 million TL, the money required for construction in the first year is 4 TL million, and in the second year it is 6 TL million. The machinery and equipment investment required for manufacturing is 13 TL million and will be paid at the end of the 2nd year. At the end of the life of the facility, the market value of the land after the tax is expected to be 2 million TL, the value of the building to be 3 million TL and the machinery and equipment to be 3 million TL. The first cash inflows of the project are planned from the end of the third year. The cash inflows of the facility from the 3rd year are estimated to be 6, 8, 13, 18 14 and 8 million TL respectively. - As the project manager, you will prepare a report and present it to the management. Calculate the future net value of the project. In other words, the return of this investment under these conditions, taking the end of 2 years as a reference point? Accept the annual interest rate of 15%. And draw cash Flow Diagramm 20p

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions