PC Ltd is considering a new investment whose data are shown below. The project will run

for $3$ years. The asset would be depreciated on a straight$-$line basis over the project's $3-$year

life, would have a zero$-$salvage book value and $$3000$ market value. The working capital need

is $$15000$ for the entire project that will be invested at t$=0$ and would be recovered at the end

of the project's life. Revenues and other operating costs are expected to be constant over the

project's life. What is the project's NPV and IRR and PI$?$

WACC $($ weighted average cost of capital$)10\mathrm{.}00\%$

Net investment in fixed assets $($basis$)$ $$75,000$

Required new working capital $$15,000$

Straight$-$line depreciation rate $33\mathrm{.}33\%$

Sales revenues, each year $$75,000$

Operating costs $($excluding depreciation$),$ each year $$25,000$

Tax rate $35\mathrm{.}00\%$

i$)$ The terminal cash flow at the end of the project is $($ Show your detailed calculations$)$

a$)$ $$56250($approximately$)$

b$)$ $$56900($approximately$)$

c$)$ $$58200($approximately$)$

d$)$ $$57550($approximately$)$

e$)$ None of the above $($ Marks $4)$

ii$)$ NPV of the project is $($Show your detailed calculations$)$

a$)$ $$16735($approximately$)$

b$)$ $$24829($approximately$)$

c$)$ $$16769($approximately$)$

d$)$ $$25318($approximately$)$

e$)$ None of the above