finance problem

Project Description:

i need the work to be shown (show how you derived the solution for a and b, via excel or word document)

grim enterprises is considering a new product line that requires a new machine. it will cost $24,000,000. it will be fully depreciated to a zero book value on a straight line basis over 3 years. the project will generate $75,000,000 in sales each year for 3 years. operating costs are 81% of sales per year for 3 years. grim will have $800,000 annually in interest expense as part of the financing. the tax rate is 40%. grim estimates the unlevered cost of capital as 14%. note: costs do not include depreciation or interest expense.
a. find the base-case net present value (npv).
b. suppose the project will be financed with $10,000,000 in bonds. the bonds have a 3-year life, a coupon rate of 8% and a yield of 8%. the remaining funds will come from retained earnings. find the adjusted present value (apv).
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