You won a 5-year contract to set up a transport company allied to Dust SA. Within these five years you will be paid $43,500 for transportation performed.

for him development of this company must have vehicles whose investment has a value of $60,000,000, which must be equipped with GPS, assuming another investment of $25,000,000. Service of Internal Taxes , notifies you that the accounting useful lives of the vehicles and GPS are of 6 and 4 years respectively. On the other hand, there is a piece of land acquired for $10,000,000. The associated expenses are $250 of fuel for transportation, $130,000 for annual maintenance in the first year whose value began to increase by 5% at the end of the second year, and lastly an insurance cost of $5,000 per year. The working capital amounted to $11,000,000. The project engineer makes a projection of the estimated amount of transportation that from year 1 to 5, as can be seen in the following table.

They plan to pay 60% of the investment with a loan that they will request from the Central bank, who will offers to pay at a rate of 8% per year, for 4 years. At the end of the project you can sell the land, vehicles and GPS at a value of 100%, 35% and 20% of the acquisition value. The discount rate is 15% and the tax is 27%. perform a cash flow of the project and calculate the feasibility of this using the NPV method and the TIR.

\begin{tabular}{|l|r|r|r|r|r} \hline Year & 1 & 2 & 3 & 4 & 5 \\ \hline number of transports & 395 & 484 & 419 & 512 & 523 \end{tabular} \begin{tabular}{|l|r|r|r|r|r} \hline Year & 1 & 2 & 3 & 4 & 5 \\ \hline number of transports & 395 & 484 & 419 & 512 & 523 \end{tabular}