ADDITIONAL INFORMATION:

X = 8

Y = 1

MKCORPORATION, INC. is a pharmaceutical company in Jakarta and has plans to release a vitamin supplement product due to high demand during the pandemic. In the product launching, the first-year production is 2,000 units, then the company is projected to increase its production quantity by (25 + X)% in the second year, and (30 + Y)% in the third year. The selling price of vitamins is Rp30.000 per unit. The cost involved in producing vitamins include: Variable cost per unit is estimated at 70% of the selling price. Fixed costs are Rp16.500.000. Purchase price and machine installation Rp4.200.000. The initial net working capital is Rp8.000.000. The annual net working capital needed for the following year is 15% of projected sales. This equipment will last for three years and depreciated using the straight-line method. Within three years, this equipment could be sold for about 10% of its cost. Assumed tax rate is 25%. a. Calculate the projected cash flow (OCF, Change in NWC, and NCS)! b. Calculate the NPV ifr = 25%!| c. Is the project acceptable