Question: After spending $10,300 on client development, you have ist been offered a big production contract by a w den The con il to you r

After spending $10,300 on client development, you have ist been offered a big production contract by a w den The con il to you r browshoe wat ve years and it will cost you 50,000 per year to be the product You will have to use some existing equipment and buy new equipment as well. The existing equmenis Muy deprecated, but could be so for $51000w if you use in the cit will be worn at the end of the project You will buy newegen d $29.000 and use the 5-year MACRS schedule depreciate it will be worthless at the end of the project Your current production manager earns $82.000 per y since she is busy with ongen gets you n g ohne S 000 per year to help with the expansion You will have to m ely in your inventory from $20,000 10 $30,000. It will return to $20.000 the end of the project Your company's tax rate is 36 your decontrate is 140%. What is the NPV of the correct? Note: Assume that the mentis put into use in yeart Calculate the free cash flows below (Round to the nearest dolor Year Year Cost of Goods Sold GoPro Awwal Cost Depreciation EBIT TA Incremental aming Incremental Working Capital - Opportunity Cost -Capital Investment Incremental Free Cash Flow Error any number in the adil fields and then continue to the next question do 3:43 PM 11/12/2019 Type here to search After spending $10,300 on client development, you have ist been offered a big production contract by a w den The con il to you r browshoe wat ve years and it will cost you 50,000 per year to be the product You will have to use some existing equipment and buy new equipment as well. The existing equmenis Muy deprecated, but could be so for $51000w if you use in the cit will be worn at the end of the project You will buy newegen d $29.000 and use the 5-year MACRS schedule depreciate it will be worthless at the end of the project Your current production manager earns $82.000 per y since she is busy with ongen gets you n g ohne S 000 per year to help with the expansion You will have to m ely in your inventory from $20,000 10 $30,000. It will return to $20.000 the end of the project Your company's tax rate is 36 your decontrate is 140%. What is the NPV of the correct? Note: Assume that the mentis put into use in yeart Calculate the free cash flows below (Round to the nearest dolor Year Year Cost of Goods Sold GoPro Awwal Cost Depreciation EBIT TA Incremental aming Incremental Working Capital - Opportunity Cost -Capital Investment Incremental Free Cash Flow Error any number in the adil fields and then continue to the next question do 3:43 PM 11/12/2019 Type here to search
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