The managers of Classic Autos incorporated. Plan to manufacture classic Thunderbirds. The necessary foundry equipment will cost $4000000 and will be depreciated using 5 yr MACRS life. Annual sales yr 1 is 260, yr 2 is 280, yr 3 is 340, yr 4 is 370 yr 5 is 310.If the sales is $26000 per car, variable costs are $16,000 per car and fixed costs are $1200000 annually. What is the annual operating cash flow if the tax rate is 30%. The equipment is sold for salvage for $500000 at end of year 5. Net working capitol increases by $500000 at the beginning of the project year 0 and is reduced back to its original level in the final year. Find the internal rate of return for the project using incremental cash flows.
MACRS YR 1 20%
YR 2 32%
YR 3 19.2%
YR 4 11.52%
YR 5 11.52%
YR 6 5.76%
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The managers of Classic Autos incorporated. Plan to manufacture classic Thunderbirds. The necessary foundry equipment will...
The managers of Classic Autos Incorporated plan to manufacture
classic Thunderbirds (1957 replicas). The necessary foundry
equipment will cost a total of $3,800,000 and will be depreciated
using a five-year MACRS life, LOADING.... Projected sales in
annual units for the next five years are 300 per year. If the sales
price is $ 25 ,000 per car, variable costs are $18,000 per car,
and fixed costs are $1,300,000 annually, what is the annual
operating cash flow if the tax rate...
Project cash flow and NPV. The managers of Classic Autos
Incorporated plan to manufacture classic Thunderbirds (1957
replicas). The necessary foundry equipment will cost a total of
$4 comma 100 comma 0004,100,000
and will be depreciated using afive-year MACRS life,
LOADING...
. The sales manager has an estimate for the sale of the classic
Thunderbirds. The annual sales volume will be as follows:
Year one: 230230
Year four: 380380
Year two: 280280
Year five: 300300
Year three: 340340
If the...
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of$4,100,000 and will be depreciated using a five-year MACRS life, LOADING... . The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 250 Year four: 360 Year two: 280 Year five: 300 Year three: 340 If the sales price is $28,000...
6. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4.000,000 and will be depreciated using a five-year MACRS life. Projected sales in annual units for the next five years are 300 per year. If sales price is $27.,000 per car, variable costs are $18,000 per car, and fixed costs are $1,200,000 annually, what is the annual operating cash flow if the tax rate is 30%? The...
3. Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,000,000 and will be depreciated using a five-year MACRS life, The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 240 Year two: 290 Year three: 330 Year four: 350 Year five: 300 If the sales price is $26,000...
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,100,000 and will be depreciated using a five-year MACRS life,囲. Pro ected sales in annual units for the next five years are 290 per year. If the sales price is $28,000 per car, variable costs are $18,000 per car, and fixed costs are $1,300,000 annually, what is the annual operating cash flow f...
10.8
(13 part question)
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,300,000 and will be depreciated using a five-year MACRS life, B. The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 230 Year two: 280 Year three: 330 Year four: 370 Year five: 330 If the...
P10-20 (similar to) Question Help Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $3,900,000 and will be depreciated using a five-year MACRS life, . The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 260 Year two: 300 Year three: 360 Year four: 380 Year five: 330 If...
P10-20 (similar to) Question Help Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,500,000 and will be depreciated using a five-year MACRS life. The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 230 Year two: 300 Year three: 360 Year four: 370 Year five: 330 If the...
*First, what is the annual operating cash flow of the project
for year 1?
*What is the annual operating cash flow of the project for
year 2?
*What is the annual operating cash flow of the project for
year 3?
*What is the annual operating cash flow of the project for
year 4?
*What is the annual operating cash flow of the project for
year 5?
*Next, what is the after-tax cash flow of the equipment at
disposal?
*Then, what...