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show the answer for this HW2 and it do on excel hope you find the right answer
Typology: Exercises
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Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Sale/Revenue 2,000,000 2,400,000 3,000,000 3,500,000 4,000,000 2,400, Production Costs ( Revenue22%) (^) 440,000 528,000 660,000 770,000 880,000 528, Depreciation (6000000/6) (^) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000, EBIT (Sales- Cost-Depreciation) 560,000 872,000 1,340,000 1,730,000 2,120,000 872, Tax (EBIT20%) (^) 112,000 174,400 268,000 346,000 424,000 174, Net income (EBIT-Taxes) 448,000 697,600 1,072,000 1,384,000 1,696,000 697, OCF (Net income + Depreciation) (^) 1,448,000 1,697,600 2,072,000 2,384,000 2,696,000 1,697, Purchase of FA 6,000, Aftertax salvage = (600000*(1-20%)) (^) 480, NCS $ 6,000,000 $ - $ - $ - $ - $ - $ (480,000) Net working capital (NWC) = Sale of the next year x 10% (^) 200,000 240,000 300,000 350,000 400,000 240,000 - Change in NWC (200,000) (40,000) (60,000) (50,000) (50,000) 160,000 240,000 - - Oppourtunity cost of assets CFFA $ (6,200,000) $ 1,408,000 $ 1,637,600 $ 2,022,000 $ 2,334,000 $ 2,856,000 $ 2,417, NPV@10% $ 2,684,723. IRR 22% IRR= 0.22 = 22%