A project's initial investement is $200,000 stright line line depreciated to $20,000 salvage value over a 5
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A project's initial investement is $200,000 stright line line depreciated to $20,000 salvage value over a 5 year life. Projected sales: 2500 units @ $88 / unit, variable cost: $50 / unit, Fixed costs (excl. depr): $30,000 per year. Compute OCF per year, IRR, NPV with WACC of 12%, payback period, MIRR with reinvestment rate of 10%, Equivalent Annual Annuity (EAA) of the project at 12% WACC?
| Any Year (1 to 5) |
Sales | |
Variable cost | |
Fixed Cost | |
Depreciation | |
EBIT | |
Tax @ 30% | |
Net Income | |
OCF | |
OCF = 56,300per year; IRR = 14.7%; NPV = $14,297; Payback = 3.55 yrs, MIRR 11.04%; EAA = 3,966 Can you explain how to get these answers without using excel
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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