what is the NPV of this project?

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FastTrack​ Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year. Once in​ production, the bike is expected to make $300,000 per year for 10 years. Assume the cost of capital is 10%. a. Calculate the NPV of this investment​ opportunity, assuming all cash flows occur at the end of each year. Should the company make the​ investment? b. By how much must the cost of capital estimate deviate to change the​ decision? ​(Hint​: Use Excel to calculate the​ IRR.) c. What is the NPV of the investment if the cost of capital is 14%​? Note​: Assume that all cash flows occur at the end of the appropriate year and that the inflows do not start until year 7.

Management of Blossom Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $225,550 and will generate cash flows of $97,750 over each of the next six years. If the cost of capital is 12 percent, what is the MIRR on this project?

Dog Up! Franks is looking at a new sausage system with an installed cost of $500,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $74,000. The sausage system will save the firm $180,000 per year in pretax operating costs and the system requires an initial investment in net working capital of $33,000. If the tax rate is 24 percent and the discount rate is 9 percent, what is the NPV of this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. S 119,822.41 NPV

The proposed capital project calls for the Manufacturing Department to fully automate a production facility using one of two different advanced robotics systems. System A will incur development costs of $175,500. System B will cost $650,000 to develop. Both systems will be capitalized and amortized using a CCA rate of 10%. In addition, the firm believes that Net Working Capital will rise by $95,000 at time zero and then by an additional $9,000 at the end of each year for each year that the new system is operating (except at the end of the final year of the project). This applies to both alternatives. However, all of the increase in Net Working Capital will be recovered at the end of the project.If the new automated robotics system is put into use, the pre-tax cost savings each year are estimated as follows:Table 1Year System A System B1 $60,000 $350,0002 $50,000 $220,0003 $50,000 $240,0004 $50,000 $260,0005 $25,000 $280,000 As the financial analyst, you are required to draft a…

Dog Up! Franks is looking at a new sausage system with an installed cost of $863,006. This cost will be depreciated straight-line to 68,640 over the project's 7-year life, at the end of which the sausage system can be scrapped for $130,815. The sausage system will save the firm $249,240 per year in pretax operating costs, and the system requires an initial investment in net working capital of $61,737. If the tax rate is 0.29 and the discount rate is 0.1, what is the total cash flow in year 7? (Make sure you enter the number with the appropriate +/- sign)

Dog Up! Franks is looking at a new sausage system with an installed cost of $440,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $62,000. The sausage system will save the firm $250,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $21,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) NPV eBook & Resources eBook: 10.6. Some Special Cases of Discounted Cash Flow Analysis Check my work

Eggz, Incorporated, is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $455,000 and will be eligible for 100 percent bonus depreciation. The equipment can be sold for $63,000 at the end of the project in 5 years. Sales would be $347,000 per year, with annual fixed costs of $53,000 and variable costs equal to 40 percent of sales. The project would require an investment of $37,000 in NWC that would be returned at the end of the project. The tax rate is 21 percent and the required return is 13 percent. Calculate the NPV of this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

Jamaica Corp. is adding a new assembly line at a cost of $6 million. The firm expects the project to generate cash flows of $1 million, $1 million, $3 million, and $4 million over the next four years. Its cost of capital is 16 percent. What is the MIRR on this project, and should the company add the new assembly line? 18.25 percent, no O 18.25 percent, yes O 21 percent, no O 21 percent, yes none of these G13