Net Cash Flows Regarding Project Proposals

Investment Projects (000,00 TL)	Project 1 Engine and Transmission Casting Line Revision	Project 2 Engine and Transmission Assembly Line Revision	3. Alloy R&D Laboratory Establishment	4. From Alloy R&D Laboratory Procurement of services
Years
0	- 500.000	- 240.000	- 120.000	- 60.000
1	45.000	30.000	10.000	0
2	60.000	40.000	10.000	0
3	70.000	46.500	10.000	0
4	80.000	60.000	10.000	0
5	100.000	70.000	10.000	0
6	100.000	70.000	15.000	0
7	100.000	75.000	15.000	0
8	100.000	75.000	15.000	0
9	100.000	75.000	15.000	0
10	100.000	75.000	15.000	0

* Motorlu Araclar A.Ş. does not have enough equity to be transferred to the said investments and will only be able to afford the first two projects. Equity cost is 18%.

* It will be necessary to use foreign resources for the third and fourth projects. The interest rate to be applied for the foreign resource will be 20% and will be repaid in equal installments over a 5-year term.

* In all project proposals, the entire investment amount is subject to depreciation and the economic life is 6 years, the weighted depreciation rate is 15%.

* In accordance with the incentive provisions in practice, the corporate tax rate to which the company will be subject will be 20%. * Among these projects, the third project, the Alloy R&D Laboratory Establishment Project, and the fourth project, the Alloy R&D Service Procurement Project, are alternative projects.

) Calculate the depreciation expenses related to the project proposals and show them in the table.

Answer rating: 100% (QA)

Depreciation expenses for the project proposals Depreciation expenses for the entire investment amou... View the full answer