Question: Years for Analysis 4 Beginning Year 2021 First Unit Units 74,500,000 First Year Sales Price/Unit $8.64 Annual Unit Growth (2022-2024) 0% Unit Price Increase (2022-2024)

Years for Analysis

4
Beginning Year 2021
First Unit Units 74,500,000

First Year Sales Price/Unit

$8.64

Annual Unit Growth (2022-2024)

0%

Unit Price Increase (2022-2024)

0%
2021 2022 2023 2024
Cost/Unit 60% 60% 60% 60%
Tax Rate 32.50%
Fixed Costs $3,650,000
Depreciation $1,200,000
USD per 1 Euro 2021 $1.00
2022 $1.00
2023 $1.00
2024 $1.00
Cost of Capital 10.25%

Prepare a "Baseline" Capital Budget analysis, calculating the Net Present Value of the operation. Note, the operation is in the U.S. and it's "parent "is in Germany. Thus, the final numbers should be in Euros.

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