B E F G H 0 1 2 3 4 12 13 Investment Outlays at Time = 0 14 CAPEX Equipment = Cost (1-T) ANOWC Additional net operating working capital needed Operating Cash Flows Over the Project's 15 16 Life (Time = 1-4) 17 Unit sales -$900 -100 2,720 2,640 2,515 2,430 18 Sales price 19 Variable cost per unit 20 Sales revenues = Units x Price $2.00 $2.00 $2.00 $2.00 $1.0196 $1.0404 $1.0457 $1.1973 $5,440 $5,280 $5,030 $4,860 21 Variable costs = Units × Cost/unit 2,773 2,747 2,630 2,909 22 Fixed operating costs except depr'n 2,000 2,000 2,000 2,000 23 Depreciation: 100% Bonus Depreciation in Year 0 0 0 0 0 24 Total operating costs $4,773 $4,747 $4,630 $4,909 25 EBIT (or Operating income) $667 $533 $400 -$49 26 Taxes on operating income 25% 167 133 100 -12 27 EBIT (1-T) After-tax project operating income $500 $400 $300 -$37 28 Add back depreciation 0 0 0 0 29 EBIT (1-T)+ Depreciation $500 $400 $300 -$37 30 Terminal Cash Flows at Time = 4 31 Salvage value (taxed as ordinary income) 32 Tax on salvage value = 0.25x (SV - BV of equipment at t=4) 33 After-tax salvage value 34 ANOWC = Recovery of net operating working capital Project free cash flows = EBIT(1-T) + DEP 35 36 - CAPEX-ANOWC 50 50 13 37 100 -$1,000 $500 $400 $300 $100 37 Alternative depreciation Straight line 2 3 4 38 Cost: $1,200 Rate 25% 25% 25% 25% 39 40 Project Evaluation @ WACC= Depreciation 10% $300 $300 $300 $300 41 Bonus Depreciation Formulas Straight line 42 NPV $78.82 =NPV(D40,F35:135)+E35 $16.56 43 IRR 14.489% =IRR(E35:135) 10.700% 44 MIRR 12.106% =MIRR(E35:135,D40, D40) 10.349% 45 Payback 2.33 =G12+(-E35-F35-G35)/H35 2.67

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Net present value Using a cost of capital of 12%, calculate the net present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $ (Round to the nearest cent.) xt Librai alculat esource Enter your answer in the answer box and then click Check Answer. Study 1 part remaining Check Answer Clear All ication Tools > Type here to search

Help pls stepwise

Please do not give solution in image format thanku

Y9

please tell me which is the best option and formulate why, thanks

Manshukh

Please use excel formulas when answering questions

What is the project's MIRR? r = 10.00% 0 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O d. 14.81% O e. 15.65% -$875 1 $300 2 $320 3 $340 $360