?use the cost of capital as the reinvestment rate for the MIRR

Old Situation New Situation Turkeys per Year 500,000 500,000 Cost per Turkey 7.00 6.00 Shipping cost per Turkey 1.00 1.50 10.00 S 10.00 Selling Price Total Variable cost per Turkey 8.00 7.50 I've already provided the the old and New situation and calculated the Intial Outlay. What I 0.50 Additional Gross Profit per Turkey you shoud focus on is that, under the Old Situation, there were no fixed costs and now there S 15,000.00 Investment in Additional Turkeys is a fixed Labor Expense of $130,000 and Depreciation. REMEMBER: Depreciation is not a Land Cost S 150.000.00 cash flow item, however the tax savings from depreciation is a cash flow savings. Buildings Cost S 300,000.00 Labor Expense 130,000.00 Now, complete the areas shaded in Purple. Depreciation Salvage Value (Buildings) S 100,000.00 40,000.00 Annual Depreciation Expense S Actual Salvage Value (Land) $200,000.00 S 100,000.00 Actual Salvage Value (Buildings) Life of Project Tax Rate 34% Weighted Average Cost of Capital 11%. r Period Cash Flow Initial Outlay $465,000.00 Annual After-tax Cash Flow Terminal Cash Flow Profitability Measures Payback Period NPV Profitability Index MIRR 4 Income statement Balance sheet Regression wAcc Break-Even Cost-Benefit Analysis