Please solve problem 6

using the data fron problem five resolver problem 6

on the same 8. projec mated from cash project? Year Il be $25 preciated 0 million 0 1 2 3 ments for a project Yar Revenge - Cost of Goods Sold - Depreciation 4,800 320 lion next for the 2.000 5.200 Plot the net pre is the internal 169, would yo 9. Estimate the project descri mation, is The tax rate is 40% decision on a 10. You are ana with the follo Year 0 1 2 3 4 5. You are provided with the projected income a $11,000 $12,000 $13 The project required an initial investment of $15.000 and an additional investment of $2,000 t The working capital is anticipated to be 10% of rev. the cost of equity is 16%. Would you accept the d. Estimate the internal rate of return to equity investors in the firm. Would you accept the project 7. You are provided with the following cash flows on a 1 2 $10,000 4.000 4,400 3,000 2,000 3.600 EBIT by year the end of year 2 by year enues, and the working capital investment has to be made at the beginning of each period. should a. Estimate the free cash flow to the firm for each of the four years. Franged bi Estimate the payback period for investors in the itched firm preci- c. Estimate the net present value to investors in the firm if the cost of capital is 12%. Would you accept the project? d. Estimate the internal rate of return to investors in the firm. Would you accept the project? 6. Consider the project described in Problem 5. Assume that the firm plans to finance 40% of its net capital alue expenditure and working capital needs with debt. and . Estimate the free cash flow to equity for each of the rand b. Estimate the payback period for equity investors in ald it c. Estimate the net present value to equity investors if the nual project 2. Estimat assumir ter proj b. Estima ect. W c. What each future d. What each four years the firm. 11. You ha investit the pre ect? W project ne.) 12. Busine should Expla 13. You the on the same 8. projec mated from cash project? Year Il be $25 preciated 0 million 0 1 2 3 ments for a project Yar Revenge - Cost of Goods Sold - Depreciation 4,800 320 lion next for the 2.000 5.200 Plot the net pre is the internal 169, would yo 9. Estimate the project descri mation, is The tax rate is 40% decision on a 10. You are ana with the follo Year 0 1 2 3 4 5. You are provided with the projected income a $11,000 $12,000 $13 The project required an initial investment of $15.000 and an additional investment of $2,000 t The working capital is anticipated to be 10% of rev. the cost of equity is 16%. Would you accept the d. Estimate the internal rate of return to equity investors in the firm. Would you accept the project 7. You are provided with the following cash flows on a 1 2 $10,000 4.000 4,400 3,000 2,000 3.600 EBIT by year the end of year 2 by year enues, and the working capital investment has to be made at the beginning of each period. should a. Estimate the free cash flow to the firm for each of the four years. Franged bi Estimate the payback period for investors in the itched firm preci- c. Estimate the net present value to investors in the firm if the cost of capital is 12%. Would you accept the project? d. Estimate the internal rate of return to investors in the firm. Would you accept the project? 6. Consider the project described in Problem 5. Assume that the firm plans to finance 40% of its net capital alue expenditure and working capital needs with debt. and . Estimate the free cash flow to equity for each of the rand b. Estimate the payback period for equity investors in ald it c. Estimate the net present value to equity investors if the nual project 2. Estimat assumir ter proj b. Estima ect. W c. What each future d. What each four years the firm. 11. You ha investit the pre ect? W project ne.) 12. Busine should Expla 13. You the