Question: Could you please help me verify that my calculations are correct? Section 1 Part a) Input area: Initial investment 550,000 Year 1 nominal revenue 69

Could you please help me verify that my calculations are correct?

Could you please help me verify that my
Section 1 Part a) Input area: Initial investment 550,000 Year 1 nominal revenue 69 69 69 300,000 Year 1 nominal expens 125,000 Revenue & Expense growth rate 4% Nominal salvage value 60,00 Net working capital 15,000 Tax rate 21% Output area: Salvage value 60,000 Market price 60,000 Tax on sale (12,600) Aftertax salvage value 47,400 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Sales $ 300,000 5 312,000 $ 324,480 5 337,459 5 350,958 Expenses 125,000 130,000 135,200 140,608 146,232 Depreciation 110,000 1 10,000 110,000 110,000 110,000 EBT $ 65,000 5 72,000 $ 79,280 5 86,851 5 94,725 Tax 13,650 15,120 16,649 18,239 19,892 Net income $ 51,350 56,880 5 62,631 5 68,612 74,833 OCF $ 161,350 5 66,880 5 172,631 5 178,612 5 84,833 Capital spending (550,000) Net working capital (15,000 Total nominal cash flow (565,000) $ 212,700 $ 223,760 $ 235,262 $ 247,225 $ 259,666 Part bl Cost of equity based on CAPM Risk-free rate 4% Market risk premium 6% Beta 1.19 You should find Apple's beta from Yahoo Finance. Cost of equity 11 risk-free rate + beta ' market risk premium Part c) Cost of debt basedon bond yields Apple's bonds with Maturity in 2027 https:llfinra-markets.morningstar. com/BondCenterClefault.isp?part=3 3.28 List the yields of all bonds with maturity between 1/1/2027 and 12/31/2027 3.272 3.179 Calculate the average yield 3.25 3 . 161 Cost of debt = the average yield 3% 3.373 Part d) Capital structure of Apple Market value of equity E Stock price * number of shares outst The stock price when you search it online. So students Market value of debt D book value of debt 124,719,000,000 Number of shares outstanding should be founded from Weight of equity = E/ (D + E) 0.95 Apple stock pric 158.95 Weight of debt = D/ (D + E) 0.05 Number of shares outstanding should be founded from' Share Outstand 16.300.300,000 Part e) WACC Book Value of 0 124,719,000,000 WACC = Weight of equity * cost of equity + Weight of debt ' cost of debt ' (1- To) 0. 11 Part f) NPV of the project Use WACC as the discount rate. and use the NPV() fuction to calculate the NPV. =npv[waco.year 1, year 2. ...)+035 $303,139.27

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