Question
What is the NPV using the accelerated depreciation for project with reiquired investment of $10,000, WACC 11%, Tax rate 40%; Yr 1 unit sales 5,500,
What is the NPV using the accelerated depreciation for project with reiquired investment of $10,000, WACC 11%, Tax rate 40%; Yr 1 unit sales 5,500, sales price 42.57, variable cost per unit 22.83, fixed operating cost 66,750, accelerated depreciation rate 33%: Yr 2 unit sales 5,200 sales price 43.55, variable cost per unit 22.97, fixed operating cost 68,950, accelerated depreciation rate 45%; Yr 3 unit sales 5,700, sales price 44.76, variable cost per unit 23.45, fixed operating cost 69,690, accelerated depreciation rate 15%; Yr 4 unit sales 5,820, sales price 46.79, variable cost per unit 23.87, fixed operating cost 68,900, accelerated depreciation rate 7%.
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