Question: Based on these cash flows, what is the calculation for NPV Year 0 1 2 3 4 Capital Investment (2,200,000) Operating Cash Flows 318,751 561,662

Based on these cash flows, what is the calculation for NPV

Year 0 1 2 3 4 Capital Investment (2,200,000) Operating Cash Flows 318,751 561,662 532,065 697,560 Investment in Net Working Capital (300,000) (110,208) (128,723) (150,348) 689,279 Salvage Value Net of Tax - 342,500 Total Cash Flows (2,500,000) 208,543 432,939 381,717 1,729,339 WACC 0.0765

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 Accounting Questions!

Question 2, 5, 8 Exam coming, would like to make those questions clear with solutions Thanks! EFB210 Finance 1 Tutorial 6: Capital Budgeting 2 Prescribed Reading: Lecture Notes Peirson et al. (2015)...

Please answer this question.. Very easy. -What sources of value most plausibly account for the differences between buyer and seller? -Structure and execute a discounted cash flow valuation of all of...

* Use Sensitivity analysis for project and Parent viewpoints (pp. 498-499) * Assignment Requirements: => Assume 10% Depreciated (Rp/$) Rupiah-to-Dollar exchange rate as compared to those shown in the...

D30 G H J K L M N 0 P Q R S T U 7 Learning Objectives Year 3-year 20-year Depreciation rate for recovery period 5-year 7-year 10-year 15-year 20.00% 32.00 24.49 18.00 9.50 19.20 17.49 14.40 8.55...

Consider Bloopers mining project. Suppose that by investing an additional $4,000,000 initially, Blooper could reduce variable costs to 30% of sales. Use Spreadsheet 10.1. a. Find the incremental NPV...

This the question for my assignment. I already calculate the NPV and IRR using spreadsheet. Also calculated the sensitivity analysis but i'm confuse it is correct or not can you please check. I'm...

DANIEL DIERMEIER AND EVAN MEAGHER 5-312-503 San Francisco International Airport and Quantum Secure's SAFE for Aviation System: Making the Business Case for Corporate Security On January 22, 2008,...

I need assistance on capital budgeting through excel. Someone please help! 1 CAPITAL BUDGETING 40 POINTS TEMPLATE FIN 431 - 520 IC-1B Webmasters has developed a powerful new server that would be used...

Year 0 1 2 3 4 5 EBIT Taxes NOPAT Plus: Depreciation Less: CAPEX Less: Net working capital needs (See Note 1) Plus: Salvage value of the fixed assets in year 5 Firm Free Cash Flow (FFCF) Net Fixed...

1 CAPITAL BUDGETING 40 POINTS TEMPLATE FIN 431 - 520 IC-1B Webmasters has developed a powerful new server that would be used for corporations internet activities. The data related to this project is...

dP dt =kP+M, P(0) = Po a) Assuming k and M are constants, solve this differential equation for P(t). b) Using the solution P(t) from part a), determine the relationship between the parameters k and M...

The owner of a gasoline station wants to study gasoline purchasing habits of motorists at his station. He selects a random sample of 60 motorists during a certain week, with the following results: ...

Question 1 1 ( 2 points ) An easement that Ursula enjoys across her neighbor, Henry's land: a runs with the land; extends to future owners of Ursula's land. b is only effective during Ursula's...

Discuss qualitative research designs in detail?