Question: Quickly please .... I'll give you straight like Intel is considering making a new investment of $ 1000 in a new chip producing facility and
Quickly please .... I'll give you straight like
Intel is considering making a new investment of $ 1000 in a new chip producing facility and has come with the following estimated revenues are 1450 , operating expenses 500, depreciation $250 per year. The project will end after four years, the marginal tax rate is 40% and the cost of capital for Intel is 0.06.
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Estimate the initial investment.
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Estimate the annual after-tax cash flow to the firm to Intel on this investment. (You have to do it only once, since the cash flows are the same every year)
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Estimate the net present value of this project.
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