YearsRevenueCash ExpenseBookDepreciationBook IncomePre-TaxBook Tax at32%After Tax BookIncomeFinancialMeasuresProfit Margin%Net AssetsROA %CashflowRevenueCash ExpenseTaxDepreciationPretax IncomeTax at 32%After TaxIncomeAfter TaxCashflowCumulativeCashflowPaybackPeriodPresent Worth10PW12PW15IRRPV Index(15)Facility CostIncome TaxRate0C. -9.5d. -12.4$ 100,000.002.2 Years91740.926790.39570252610.684350818$ 100,000.0032%$30,000.00$100,000.00 $120,000.00 $140,000.00 $150,000.00 $150,000.00$50,000.00 $60,000.00 $70,000.00 $75,000.00 $75,000.002$20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00$0.20$20,400.00 $27,200.00$0.26$9,600.00 $12,800.00 $16,000.00 $17,600.00 $17,600.00$20,400.00($100,000.00) $40,400.00 $51,040.00($100,000.00) -$59,600.00 -$8,560.00$40,000.00 $50,000.00 $55,000.00 $55,000.00$0.233$0.45$36,727.27$80,000.00 $60,000.00 $40,000.00 $20,000.00$0.85$1.874$19,040.005$34,000.00 $37,400.00$0.24$42,181.82$0.25$100,000.00 $120,000.00 $140,000.00 $150,000.00 $150,000.00$50,000.00 $60,000.00 $70,000.00 $75,000.00 $75,000.00$20,000.00 $32,000.00 $19,000.00 $12,000.00 $17,000.00$30,000.00 $28,000.00 $51,000.00 $63,000.00 $58,000.00$9,600.00 $8,960.00 $16,320.00 $20,160.00 $18,560.00$37,400.00$40,330.58 $37,456.46 $35,044.8081845.95094 $36,071.43 $40,688.78 $38,208.36 $34,851.81 $32,025.5768435.08185 $35,130.43 $38,593.57 $35,295.47 $31,354.95 $28,060.65$0.25$0.00#DIV/0!$34,680.00 $42,840.00 $39,440.00$53,680.00 $54,840.00 $56,440.00$45,120.00 $99,960.00 $156,400.003. If the operating cost is 20% HIGHER in each project year, what is the CHANGE in the IRR for the project?-3.8a.b. -6.7

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Description: YearsRevenueCash ExpenseBookDepreciationBook IncomePre-TaxBook Tax at32%After Tax BookIncomeFinancialMeasuresProfit Margin%Net AssetsROA %CashflowRevenueCash ExpenseTaxDepreciationPretax IncomeTax at 32%After TaxIncomeAfter TaxCashflowCumulativeCash

First, we need to determine the new cash expenses (operating expenses) using the formula…

Answered: 3. If the operating cost is 20% HIGHER…

Business

Finance

3. If the operating cost is 20% HIGHER in each project year, what is the CHANGE in the IRR for the project? a. -3.8 b. -6.7 C. -9.5 d. -12.4

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter4: Profitability Analysis

Section: Chapter Questions

Problem 23PC

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