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Use the following information to answer question no. 11 13: A three-year project has an initial fixed asset investment of Rp. 240 millions that is
Use the following information to answer question no. 11 13: A three-year project has an initial fixed asset investment of Rp. 240 millions that is depreciated over the project life, and has no salvage value. The project also needs an initial NWC (net working capital) investment of Rp. 50 millions, and an annual OCF (operating cash flow) of Rp. 125 millions. The required return is 10%, and tax rate is 30%. 11. How much money the capital must be available to run the project? a. Rp. 175 millions b. Rp. 240 millions c. Rp. 290 millions d. Rp. 415 millions 12. If no interest expenses, what is the projects EBIT? a. Rp. 45.0 millions b. Rp. 64.3 millions c. Rp. 80.2 millions d. Rp. 125 millions 13. Assume no change in NWC and no NWC can be recovered at the end of project life, what is the NPV? a. Rp. 18.3 millions b. Rp. 19.9 millions c. Rp. 20.0 millions d. Rp. 20.9 millions
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