Please help with question 5. I attached the tables as well. If anything is incorrect please help. Thank You!!!

is it correct?

5. What would be the net present value, NPV in this "worst case" cash flow? What will be the IRR? Instructions Cost of Capital Capital Budgeting + O Type here to search et e 6 LB e % Table 2 5 Year 00 OU Cash from Cash outflow, Revenue in expenses in Depreciation in Taxable Income Tax in Millions After tax Cash Flow In $Millions $Millions $Millions in $ Millions 27.5% rate Millions NPV 1 $1,800 $1,728 $50.02 $21.99 $6.05 $65.95 $2.31 2 $1,900 $1,824 $85.72 -$9.72 -$2.67 $78.67 $2.76 3 $2,000 $1,920 $61.22 $18.79 $5.17 $74.83 $2.63 $2,100 $2,016 $43.72 $40.29 $11.08 $72.92 $2.56 5 $2,200 $2,112 $31.26 $56.75 $15.60 $72.40 $2.54 6 $2,300 $2,208 $31.22 $60.78 $16.71 $75.29 $2.64 $2,400 $2,304 $31.26 $64.75 $17.80 $78.20 $2.74 $2,500 $2,400 $15.61 $84.39 $23.21 $76.79 $2.69 $2,600 $2,496 $104.00 $28.60 $75.40 $2.65 $2,700 $2,592 $108.00 $29.70 $78.30 $2.75 $2,600 $2,496 $104.00 $28.60 $75.40 $2.65 $2,500 $2,400 $100.00 $27.50 $72.50 $2.54 13 $2,400 $2,304 $96.00 $26.40 $69.60 $2.44 $2,200 $2,112 $88.00 $24.20 $63.80 $2.24 Instructions Cost of Capital Capital Budgeting BB 14 a O DE e Type here to search L 94% e W $15.61 $0.00 $0.00 $0.00 $27.04 No 14 15 $2,500 $2,600 $2,700 $2,600 $2,500 $2,400 $2,200 $2,000 $1,800 $1,500 $1,200 $800 $400 $2,448.00 $2,545.92 $2,643.84 $2,545.92 $2,448.00 $2,350.08 $2,154.24 $1,958.40 $1,762.56 $1,468.80 $1,175.04 $783.36 $391.68 $36.39 $54.08 $56.16 $54.08 $52.00 $49.92 $45.76 $41.60 $37.44 $31.20 $24.96 $16.64 $8.32 $18.20 $27.04 $28.08 $27.04 $26.00 $24.96 $22.88 $20.80 $18.72 $15.60 $12.48 $8.32 $4.16 S $33.80 $22.53 $27.04 $18.03 $28.08 $18.72 $18.03 $26.00 $17.33 $24.96 $16.64 $22.88 $15.25 $20.80 $13.87 $18.72 $12.48 $15.60 $10.40 $12.48 $8.32 $8.32 $5.55 $4.16 $2.77 NPV= $381.55 16 17 18 19 20 Taxable income After tax Cash Flow In Instructions Depreciation in Capital Budgeting Cost of Capital Type here to search 3 Year lauw Depreciation in Taxable income Revenue Expenses SMillions in $ Millions Taxes $1,800 $1,835.25 $50.02 $85.27 $1,900 $1,937.21 $85.72 -$122.93 $2,000 $2,039.17 $61.22 $100.39 $2,100 $2,141.13 $43.72 $84.85 $2,200 $2,243.08 $31.26 $74.34 $2,300 $2,345.04 $31.22 $76.26 $2,400 $2,447.00 $31.26 $78.26 $2,500 $2,548.96 $15.61 -$64.57 $2,600 $2,650.92 $50.92 10 $2,700 $2,752.88 -$52.88 D (Ctrl- $2,600 $2,650.92 -$50.92 $2,500 $2,548.96 -$48.96 13 $2,400 $2,447.00 -$47.00 14 $2,200 $2,243.08 -$43.08 15 $2,000 $2,039.17 -$39.17 16 $1,800 $1,835.25 O $35.25 Instructions Cost of Capital Capital Budgeting After tax Cash Flow In $Millions NPV -$42.64 $7.38 $4.92 -$61.46 $24.26 $16.17 -$50.19 $11.03 $7.35 -$42.42 $86.14 $57.43 -$37.17 -$5.91 ($3.94) -$38.13 $6.91 ($4.61) -$39.13 $7.87 ($5.25) $32.29 $16.68 ($11.12) -$25.46 $25.46 ($16.97) - $26.44 $26.44 ($17.63) -$25.46 $25.46 ($16.97) -$24.48 $24.48 ($16.32) -$23.50 $23.50 ($15.67) -$21.54 -$21.54 ($14.36) -$19.58 -$19.58 ($13.06) -$17.63 -$17.63 ($11.75) 8 12 O Type here to search Bt e L e 94% M 17 18 $1,500 $1,200 $800 $400 N $1,529.38 $1,223.50 $815.67 $407.83 P -$29.38 $23.50 $15.67 $7.83 $14.69 -$11.75 $7.83 $3.92 0 0 -$14.69 -$11.75 $7.83 -$3.92 NPV= 9% S ($9.79) ($7.83) ($5.22) ($2.61) ($87.23) IRR= (Ctrl) - Instructions Cost of Capital Capital Budgeting O Type here to search X Fox A B C D E F G H J K As you know from Project 4, McCormick & Company is considering a project that requires an initial investment of $350 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $14 million. You have been asked to refine your work to include the correct tax impact of depreciation, and the cash flow impact of working capital on the capital budget evaluation. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The correct depreciation table is included at the right. 15 16 17 18 19 The company will need to finance some of the cash to fund $17 million in receivables and $14 million in Inventory starting at year zero. The company expects vendors to give free credit on purchases of $15 million (accounts Payable). Add the net cash outflow for working capital to the cash outflow for the plant, equipment and land in year zero. The $17 million for receivables and the $14 million for Inventory are cash outflows. The $15 million for receivables is a cash inflow. Assume that this net working capital is recovered as a cash inflow in year 21. The comnany still estimates revenues and expenses the same as it did in Project 4. See Table 2 at the right. 5. What would be the net present value, NPV in this "worst case" cash flow? What will be the IRR? Instructions Cost of Capital Capital Budgeting + O Type here to search et e 6 LB e % Table 2 5 Year 00 OU Cash from Cash outflow, Revenue in expenses in Depreciation in Taxable Income Tax in Millions After tax Cash Flow In $Millions $Millions $Millions in $ Millions 27.5% rate Millions NPV 1 $1,800 $1,728 $50.02 $21.99 $6.05 $65.95 $2.31 2 $1,900 $1,824 $85.72 -$9.72 -$2.67 $78.67 $2.76 3 $2,000 $1,920 $61.22 $18.79 $5.17 $74.83 $2.63 $2,100 $2,016 $43.72 $40.29 $11.08 $72.92 $2.56 5 $2,200 $2,112 $31.26 $56.75 $15.60 $72.40 $2.54 6 $2,300 $2,208 $31.22 $60.78 $16.71 $75.29 $2.64 $2,400 $2,304 $31.26 $64.75 $17.80 $78.20 $2.74 $2,500 $2,400 $15.61 $84.39 $23.21 $76.79 $2.69 $2,600 $2,496 $104.00 $28.60 $75.40 $2.65 $2,700 $2,592 $108.00 $29.70 $78.30 $2.75 $2,600 $2,496 $104.00 $28.60 $75.40 $2.65 $2,500 $2,400 $100.00 $27.50 $72.50 $2.54 13 $2,400 $2,304 $96.00 $26.40 $69.60 $2.44 $2,200 $2,112 $88.00 $24.20 $63.80 $2.24 Instructions Cost of Capital Capital Budgeting BB 14 a O DE e Type here to search L 94% e W $15.61 $0.00 $0.00 $0.00 $27.04 No 14 15 $2,500 $2,600 $2,700 $2,600 $2,500 $2,400 $2,200 $2,000 $1,800 $1,500 $1,200 $800 $400 $2,448.00 $2,545.92 $2,643.84 $2,545.92 $2,448.00 $2,350.08 $2,154.24 $1,958.40 $1,762.56 $1,468.80 $1,175.04 $783.36 $391.68 $36.39 $54.08 $56.16 $54.08 $52.00 $49.92 $45.76 $41.60 $37.44 $31.20 $24.96 $16.64 $8.32 $18.20 $27.04 $28.08 $27.04 $26.00 $24.96 $22.88 $20.80 $18.72 $15.60 $12.48 $8.32 $4.16 S $33.80 $22.53 $27.04 $18.03 $28.08 $18.72 $18.03 $26.00 $17.33 $24.96 $16.64 $22.88 $15.25 $20.80 $13.87 $18.72 $12.48 $15.60 $10.40 $12.48 $8.32 $8.32 $5.55 $4.16 $2.77 NPV= $381.55 16 17 18 19 20 Taxable income After tax Cash Flow In Instructions Depreciation in Capital Budgeting Cost of Capital Type here to search 3 Year lauw Depreciation in Taxable income Revenue Expenses SMillions in $ Millions Taxes $1,800 $1,835.25 $50.02 $85.27 $1,900 $1,937.21 $85.72 -$122.93 $2,000 $2,039.17 $61.22 $100.39 $2,100 $2,141.13 $43.72 $84.85 $2,200 $2,243.08 $31.26 $74.34 $2,300 $2,345.04 $31.22 $76.26 $2,400 $2,447.00 $31.26 $78.26 $2,500 $2,548.96 $15.61 -$64.57 $2,600 $2,650.92 $50.92 10 $2,700 $2,752.88 -$52.88 D (Ctrl- $2,600 $2,650.92 -$50.92 $2,500 $2,548.96 -$48.96 13 $2,400 $2,447.00 -$47.00 14 $2,200 $2,243.08 -$43.08 15 $2,000 $2,039.17 -$39.17 16 $1,800 $1,835.25 O $35.25 Instructions Cost of Capital Capital Budgeting After tax Cash Flow In $Millions NPV -$42.64 $7.38 $4.92 -$61.46 $24.26 $16.17 -$50.19 $11.03 $7.35 -$42.42 $86.14 $57.43 -$37.17 -$5.91 ($3.94) -$38.13 $6.91 ($4.61) -$39.13 $7.87 ($5.25) $32.29 $16.68 ($11.12) -$25.46 $25.46 ($16.97) - $26.44 $26.44 ($17.63) -$25.46 $25.46 ($16.97) -$24.48 $24.48 ($16.32) -$23.50 $23.50 ($15.67) -$21.54 -$21.54 ($14.36) -$19.58 -$19.58 ($13.06) -$17.63 -$17.63 ($11.75) 8 12 O Type here to search Bt e L e 94% M 17 18 $1,500 $1,200 $800 $400 N $1,529.38 $1,223.50 $815.67 $407.83 P -$29.38 $23.50 $15.67 $7.83 $14.69 -$11.75 $7.83 $3.92 0 0 -$14.69 -$11.75 $7.83 -$3.92 NPV= 9% S ($9.79) ($7.83) ($5.22) ($2.61) ($87.23) IRR= (Ctrl) - Instructions Cost of Capital Capital Budgeting O Type here to search X Fox A B C D E F G H J K As you know from Project 4, McCormick & Company is considering a project that requires an initial investment of $350 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $14 million. You have been asked to refine your work to include the correct tax impact of depreciation, and the cash flow impact of working capital on the capital budget evaluation. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The correct depreciation table is included at the right. 15 16 17 18 19 The company will need to finance some of the cash to fund $17 million in receivables and $14 million in Inventory starting at year zero. The company expects vendors to give free credit on purchases of $15 million (accounts Payable). Add the net cash outflow for working capital to the cash outflow for the plant, equipment and land in year zero. The $17 million for receivables and the $14 million for Inventory are cash outflows. The $15 million for receivables is a cash inflow. Assume that this net working capital is recovered as a cash inflow in year 21. The comnany still estimates revenues and expenses the same as it did in Project 4. See Table 2 at the right