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show the answer for this HW2, Exercises of Corporate Finance

show the answer for this HW2 and it do on excel hope you find the right answer

Typology: Exercises

2023/2024

Uploaded on 03/22/2024

nghi-ha
nghi-ha 🇻🇳

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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
2,400,000
Production Costs ( Revenue*22%) 440,000 528,000 660,000 770,000 880,000 528,000
Depreciation
(6000000/6)
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
EBIT
(Sales- Cost-Depreciation)
560,000
872,000
1,340,000
1,730,000
2,120,000
872,000
Tax
(EBIT*20%)
112,000
174,400
268,000
346,000
424,000
174,400
Net income
(EBIT-Taxes)
448,000
697,600
1,072,000
1,384,000
1,696,000
697,600
OCF
(Net income + Depreciation)
1,448,000
1,697,600
2,072,000
2,384,000
2,696,000
1,697,600
Purchase of FA
6,000,000
Aftertax salvage
= (600000*(1-20%))
480,000
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
$
2,417,600
$
NPV@10%
2,684,723.83
$
IRR
22%
IRR= 0.22 = 22%
NPV = -6,200,000 + ($1,408,000/1,10) + ($1,637,600/1,10^2) + (2,022,000/1,10^3) + ($2,334,000/1,10^4) + ($2,856,000/1,10^5) + ($2,417,600/1,10^6) = $ 2,684,723.83
0 = - 5,800,000 + ($1,408,000/(1+ IRR)) + ($1,637,600/(1+ IRR)^2)) + (2,022,000/(1+ IRR)^3)) + ($2,334,000/(1+ IRR)^4)) + ($2,856,000/(1+ IRR)^5)) + ($2,417,600/(1+ IRR)^6))

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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%

NPV = -6,200,000 + ($1,408,000/1,10) + ($1,637,600/1,10^2) + (2,022,000/1,10^3) + ($2,334,000/1,10^4) + ($2,856,000/1,10^5) + ($2,417,600/1,10^6) = $ 2,684,723.

0 = - 5,800,000 + ($1,408,000/(1+ IRR)) + ($1,637,600/(1+ IRR)^2)) + (2,022,000/(1+ IRR)^3)) + ($2,334,000/(1+ IRR)^4)) + ($2,856,000/(1+ IRR)^5)) + ($2,417,600/(1+ IRR)^6))