Question: 2. This is the Excel portion of the comprehensive assignment: You're given a project that last 8 years. The project is a bike-share manufacturing plan.

 2. This is the Excel portion of the comprehensive assignment: You're

2. This is the Excel portion of the comprehensive assignment: You're given a project that last 8 years. The project is a bike-share manufacturing plan. Projected unit sales, price and variable cost per unit are as follow: Initial capital investment is $900,000. You also assign $28,000 of fixed cost a year, with depreciation method of 7-year MACRS, and 25% tax rate. The initial NWC is $42,900 and 15% of sales thereafter. The fixed asset (machines) can be sold for $110,000 at the end of the project. If the discount rate is 13%, should you invest in the project? The unit sold, price and variable cost (VC) are as follow: Create a pro forma financial statement that is similar to the ones you see in the textbook and tutorial video, with OCF, FCF and NPV calculation clearly displayed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!