4. When does IRR not work as a valuation tool? 6. What is the Total Cash Flows in Year 1? 5. Buff Sunglass Co recorded sales of $350,000 in 2022 while operating at 65% of capacity. What is the dollar amount of the increase in sales it can have before it is required to expand its fixed assets beyond the current level of $289,000 ? Hint: calculate full capacity like we did during class workshop. 7. What is the Operating Cash Flow in Year 2? Lets Do This Again Sports is building a new warehouse facility and you are asked to complete a five year model using the following assumptions: Do Not worry about round down in calculations. Hint: Calculate cashflows like in book Yr0= outflows, Yr14=OCF+ChangeNWC, Yr5=OCF+ChangeNWC+ATSV 8. What is the After Tax Salvage Value? 9. What is the NPV of the project? Should you accept it and why? 10. What is the IRR of the project? Answer: 20.47% Did you get this too