Question: please on an excel sheet. thanks Part 1: Project analysis Asterix products Inc. is considering selling a new Ground Proximity Waming System. They have spent

please on an excel sheet. thanks
please on an excel sheet. thanks Part 1: Project analysis Asterix products
Inc. is considering selling a new Ground Proximity Waming System. They have
spent 10 million over the last 4 years developing the GPWS. If

Part 1: Project analysis Asterix products Inc. is considering selling a new Ground Proximity Waming System. They have spent 10 million over the last 4 years developing the GPWS. If the GPWS were to be put on the market. Asterix expects it to stay on the market for a total of 5 years. Asterix will need to acquire production equipment worth $42 million to produce GPWSs. Accountants at Asterix decided to use a straight-line depreciation method for all equipment, so that the book value by year 5 will be 0 . The equipment is expected to sell for 12 million at the end of year 5 The selling price of the GPWS is 70,000 per system, and the varable cost to produce is 50,000 per system. The company will raise prices per year same as the inflation rate (estimated to be 2.5% per year), variable costs are also estimated to increase by 2.5% every year. The projected sales units are shown in the table below: The project requires an inventory storage that is equal to 20% of sales every year. Asterix's corporate tax rate is 40%. It has an equity beta of 1.4. The US treasury bond rate is 4%, and the S\&P 500 recent historic retum is 12%. Asterx's cost of debt is 7%, its debt-to-equity ratio (debtequity) is 50% and will remain at 50% during the life of the project. Questions: 1. what is the cost of equity of Asterix? 2. what is the WACC of Asterix? 3. Setup the project cash flows excel, and calculate the NPV of the project. 4. Will the project increase the wealth of shareholders? Part 2: Stock price analysie: It is 2023 and Beets Music is acquiring a new factory that requires 50,000,000 capital expenditure, but will enhance the growth of cash flows for the next few years. Using the information given above, answer the following questions: 1. Calculate the WACC 2. Estimate the stock price using the DCF method, and answer the following questions: 1. What is the free cash flow in year 2023 ? 2. What is the enterprise value in 2023 ? 3. Are the stocks overpriced? 3. Estimate the stock price using the multiples method, are the stock overpriced? 4. What are the advantages and disadvantages of using DCF method and multiples method

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