Question: show the formulas in excel please Consider the following project being evaluated by your company: Initial price of the asset is $230,000 will require $20,000

Consider the following project being evaluated by your company: Initial price of the asset is $230,000 will require $20,000 transportation and $5,000 Installation. Will be depreciated S/L over 6 years to zero salvage. Market value for the asset at end of 5 years is expected to be $50,000 (the asset will be operated for only 5 years) Net investment in NWC in year 0 (at the initial period) of $30,000 Sales, first year, expected to be generated by the project $100,000 Annual cost of goods sold 60% of sales Annual sales growth rate 4% Marginal tax rate 30% 1 Cost of capital 10% . . 1) Calculate the depreciable base for the asset (cost of the asset in the initial period) 2) Calculate the project's cash outflow in year 0 (Initial outlay) 3) Calculate Annual operating cash flows for year 1-5 (OCF) 4) Calculate the asset's after-tax salvage in year 5. 5) Calculate the project's internal rate of return (IRR) 1) Calculate the depreciable base for the asset (cost of the asset in the initial period) 2) Calculate the project's cash outflow in year 0 (Initial outlay) 3) Calculate Annual operating cash flows for year 1-5 (OCF) 4) Calculate the asset's after-tax salvage in year 5. 5) Calculate the project's internal rate of return (IRR) 1 Check points: NI in year 2 - (630) loss NPV = (74,265.51) Bonus: What is the 2nd year depreciation tax shield
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