Question: please help... Question 4 (14 Marks) Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture
please help... Question 4 (14 Marks) Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to cost of capital of 12% to evaluate the project. use a Ba sed on extensive research, it has prepared the following incremental free cash flow Year 0 1-10 Revenues (Sales) Manufacturing Expenses (Cost) Depreciation EBIT Taxes at 35% Incremental Earnings Depreciation Capital Expenditures Incremental Free Cash Flow 125,000.00 30,000.00 17,500.00 77,500.00 27,125.00 50,375.00 17,500 175,000 175,00067,875.00 For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? a
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