Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Total initial investment capital is 1 , 5 0 0 million VND for equipment. The installation of equipment and preparation for production will be completed
Total initial investment capital is million VND for equipment. The installation of equipment and preparation for production will be completed by the end of year of the project. The operation of the project will last for years. The life of the equipment is years, the residual value after years is In year the project's revenue is million VND and operating costs excluding depreciation and interest expenses are million VND It is expected that revenue will grow at per year over the life of the project, and operating expenses excluding depreciation and interest expenses increase at per year. To finance the project, the investor borrowed of the total initial investment capital from a bank with an interest rate of year the principal is paid in years equally starting from the end of the year Interest is paid annually, it is calculated on the debt amount owned at the beginning of each year. The equipment is depreciated using the straightline method and its disposal value is equal to its book value at the end of year and is received at the end of year The corporate income tax rate is MARR after tax is Construct the table the plan of borrowing and repay debt principal and interest Construct the table of depreciation and book value of the equipment Construct the table to show: a Before tax cashflow b Taxable income C Tax payment IM assignment Sem d After tax cashflow Calculate the PW or NPV of the project. What is the conclusion? Calculate the IRR of the project.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started