Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast...
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Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast and other information provided below: Year 9 Year 3 Year 1 $820,000 $820,000 -310,000 -310,000 Revenue Cost of Goods Sold Gross Profit Selling, General, & Admin (SG&A) Depreciation EBIT 510,000 -110,000 -160,000 240,000 Year 2 $820,000 -310,000 510,000 -110,000 -160,000 240.000 510,000 -110,000 -160,000 240,000 Question A: If Oswego Industries uses a cost of capital of 12%, what is the NPV of this project? Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast and other information provided below: Year 9 Year 3 Year 1 $820,000 $820,000 -310,000 -310,000 Revenue Cost of Goods Sold Gross Profit Selling, General, & Admin (SG&A) Depreciation EBIT 510,000 -110,000 -160,000 240,000 Year 2 $820,000 -310,000 510,000 -110,000 -160,000 240.000 510,000 -110,000 -160,000 240,000 Question A: If Oswego Industries uses a cost of capital of 12%, what is the NPV of this project?
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To calculate the NPV of the project we need to find the cash flows for each year di... View the full answer
Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
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