Question: D Question 3 5.55 pts As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The purchase price of the equipment,

 D Question 3 5.55 pts As a financial analyst, you must

D Question 3 5.55 pts As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The purchase price of the equipment, including installation, is 565,000, and the equipment will be fully depreciated at t -0. Annual sales would be 4.000 units at a price of $50 per cartridge, and the project's lite would be 3 years. Current assets would increase by 55.000 and payables by $3.000. At the end of 3 years, the equipment could be sold for $10.000. Variable costs would be 70% of sales revenues, fixed costs would be $30,000 per year, the marginal tax rate is 25%, and the corporate WACC is 11% What is the required investment after bonus depreciation is considered that is, the Year O project cash flow? 11.180 D Question 4 5.55 pts As a financial analyst, you must evaluate a proposed project to produce printer cartridges. The purchase price of the equipment, including installation, is $65.000, and the equipment will be fully depreciated at t-0. Annual sales would be 4,000 units at a price of $50 per cartridge, and the project's life would be 3 years. Current assets would increase by $5,000 and payables by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Variable costs would be 70% of sales revenues, fixed costs would be $30,000 per year, the marginal tax rate is 25%, and the corporate WACC is 11% What are the project's annual cash flows? a) Project cash flow year 1 - $ 22.500 b) Project cash flow year 2 - $ 22.500 c) Project cash flow year 3 - $ 32.000

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