Question: You are a manager at North Fare, which is considering expanding its operations in synthetic fibre manufacturing Your boss comes into your office drops a
You are a manager at North Fare, which is considering expanding its operations in synthetic fibre manufacturing Your boss comes into your office drops a constant report on your desk and complains "We owe these consultants $14 million for this report, and I am not sure their analysis makes sense Before we spend the $23 milion on equumeneeded for this project look it over and give me your opinion. You open the report and find the following estimates in ons of 1 2 10 Sales 31000 31 000 31.000 31 000 Costos sold 18 600 18 600 18 600 18.800 Cross profit 12400 12400 12400 12400 Generals and active expose 1 840 1840 1840 1840 -Deprecation 2300 100 2300 2300 Netcome 32000 B2000 8.2500 82000 income tax 2891 2.891 2891 2391 Dit the cost of capital for the project is 125 what is your estimate of the value of the new project Vale of projects in (Round to the decimal places)
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