Question: Saved pters 6 & 9 Problem 6-2 Calculating Project NPV The Best Manufacturing Company is considering a new investment. Financial projections for the investment are
Saved pters 6 & 9 Problem 6-2 Calculating Project NPV The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 22 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 $ 26,500 Investment Sales revenue Operating costs Depreciation Net working capital spending $ 13,600 $ 15,200 $16.600 $ 13,100 3,000 3,150 4.400 3.000 6,625 6,625 6,625 6,625 210 245 160 310 a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Year 1 Year 2 Year 3 Year 4 Net income Prev 2 of 12
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