Beyond Meat invested in a new piece of machinery to create a meatless meatball. The piece of
Fantastic news! We've Found the answer you've been seeking!
Question:
Beyond Meat invested in a new piece of machinery to create a meatless meatball. The piece of machinery costed $200,000. Revenues for these meatballs are expected to be 150,000 for the first year and increase by 20% every year for five years. The machinery will be depreciated using straight-line over five years and have no salvage value. The variable costs will be 60% of the revenues. Working capital is expected to be $10,000 and will be invested at the beginning of the project and returned at the end of the project. Assuming a cost of capital of 12%, a tax rate of 35%, and a five-year project life, what is the NPV and IRR?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date: