A project's initial Investment is $200,000 straight line depreciated to $20,000 salvage value over 5 year...

 

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A project's initial Investment is $200,000 straight line depreciated to $20,000 salvage value over 5 year life. Projected sales: 2,500 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 |Таx @ 30% Net Income lOCF A project's initial Investment is $200,000 straight line depreciated to $20,000 salvage value over 5 year life. Projected sales: 2,500 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 |Таx @ 30% Net Income lOCF

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Required solution Sales 220000 Variable cost 125000 Contribution margin 95000 Fixed cost 30000 Depre... View the full answer