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The project of G-depress has the following information about the project: Assume straight-line depreciation to zero....
The project of G-Depress has the following information about the project: Assume straight-line depreciation to zero. Initial investment= $20; life= 5 years; pretax sales= $20 per year; Total operating costs= 5; tax rate= 34%; No Salvage Value. Required NWC is $15. What is the NPV of this project, if discount rate is 11%? $6.5 $8.2 $9.7 $13.7 $15.5 calculate the average accounting return. 29.04% NI= 7.26 AVR assets= 25 AAR= 0.2904
The project of G-Depress has the following information about the project: Assume straight-line depreciation to zero. Initial investment= $20; life= 5 years; pretax sales= $20 per year; Total operating costs= 5; tax rate= 34%; No Salvage Value. Required NWC is $15. What is the NPV of this project, if discount rate is 11%? $6.5 $8.2 $9.7 $13.7 $15.5 8. Given the numbers in the previous example, calculate the average accounting return. à 29.04% NI= 7.26 AVR assets= 25 AAR=...
1. XYZ is considering a project with the following data: Sales Revenue = $500,000 Pre-tax Cannibalization cost = $50,000 Asset Cost = $450,000 Straight line depreciation over 3 years with zero salvage value Operating costs = $250,000 (does not include depreciation) Tax Rate 21% a. What is the after-tax cash flow? Assume a cost of capital of 10% and that the cash flows are constant for 3 years. What is the NPV? b. What is the NPV if we need...
Consider a project with the following information: Initial fixed asset investment = $495,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $43; variable costs = $26; fixed costs = $195,000; quantity sold = 94,000 units; tax rate = 22 percent. How sensitive is OCF to changes in quantity sold?
Sensitivity AnalysisConsider a project with the following information: Initial fixed asset investment = $485,000; straight-line depreciation to zero over the 4-year life; zero salvage value; price = $41; variable costs = $24; fixed costs = $189,000; quantity sold = 90,000 units; tax rate = 23 percent. How sensitive is OCF to changes in quantity sold?
Consider a four-year project with the following information: initial fixed asset investment = $375,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $56; variable costs = $23; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $275,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $46; variable costs = $12; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $575,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $36; variable costs = $17; fixed costs = $175,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
Consider a four-year project with the following information: initial fixed asset investment = $375,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $56; variable costs = $23; fixed costs = $195,000; quantity sold = 84,000 units; tax rate = 34%. How sensitive is OCF to changes in quantity sold? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) (Do not forget to include + or...
A project requires an initial fixed asset investment of $600,000, which will be depreciated straight-line to zero over the six-year life of the project. The pre-tax salvage value of the fixed assets at the end of the project is estimated to be $50,001. Projected sales volume for each year of the project is shown below. The sale price is $50 per unit for the first three years, and $45 per unit for years 4 through 1. A $30,000 initial investment...