Question: Please solve problem with excel and explain nunbers Bodyscan Company has to spend $100 land $250 building $100 equipment. Build up and inventory for $100m
Bodyscan Company has to spend $100 land $250 building $100 equipment. Build up and inventory for $100m and cash for $5m. First year sales are $20m. Second year sales are $100m. Sales grow at 50% for next 4 years and 10% next 4 years. Depreciate PP\&E straight line 10 years, sell off PP\&E for $100m at end year 10 . Taxes are 20%, required rate of return is 10% Bodyscan Company has to spend $100 land $250 building $100 equipment. Build up and inventory for $100m and cash for $5m. First year sales are $20m. Second year sales are $100m. Sales grow at 50% for next 4 years and 10% next 4 years. Depreciate PP\&E straight line 10 years, sell off PP\&E for $100m at end year 10 . Taxes are 20%, required rate of return is 10%
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