Question: Clearly show your calculations and do not copy paste your values a) Estimate the Cash Flows and find the NPV and IRR of the project(
| Clearly show your calculations and do not copy paste your values | |||||||
| a) Estimate the Cash Flows and find the NPV and IRR of the project( 8 Marks) | |||||||
| b) Find the sensitivity of NPV with respect to the WACC for +30% and -30% devaition from the base value of 10% (2 Marks) | |||||||
| WACC | 10% | ||||||
| Net investment in fixed assets | 75000 | ||||||
| Required new working capital | 15000 | ||||||
| Straight-line deprec. Rate (every year) | 33.33% | ||||||
| Sales revenues( each year) | 75000 | ||||||
| Operating cost excluding depreciation, each year | 25000 | ||||||
| Salvage value of the equipment | 1000 | ||||||
| Tax Rate | 35% | ||||||
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