Question: Legacy Inductries is considering a new investment whose data are shown below. The equipment would be depreciated on a straight line basis over the projects

Legacy Inductries is considering a new investment whose data are shown

Legacy Inductries is considering a new investment whose data are shown below. The equipment would be depreciated on a straight line basis over the projects 3 year life, would have a zero salvage value, and would initially require additional working capital that would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the projects life. Please show all of your work. 1. Project cash flows: 2.NPV: 3. IRR: 4. MIRR: 5. Payback period: WACC Cost of Equipment Net working capital Straight line depreciation rate Sales revenue each year Operating costs(excl. c Tax Rate 10.00% 75,000 $15,000 33.33% 75,000 $25,000 35.00%

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