Question: how to solve this? Please provide step by step. A robotics firm is deciding whether to start the production of a new vacuum cleaner robot,

A robotics firm is deciding whether to start the production of a new vacuum cleaner robot, the Fabi. The necessary manufacturing equipment costs 6,000 and has an expected economic life of 6 years. The equipment will be depreciated using the straight-line method over 6 years. At the end of the five years, the equipment can be sold for 1,500. The marketing department provides the following forecast: Year Sales Revenue Costs 12,000 8,000 2 3 5 14,000 14,000 14,000 10,000 9,000 9,000 9,000 7.000 Net Working Capital requirements at the end of each year are expected to be 10 % of sales, but in the last year of the project they will be brought to zero. The company pays 40% corporate taxes, and its weighted average cost of capital is 10%. What is the NPV of the Fabl project
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