Project NPV and IRR Assignment | Homework For You

someone other than Prasad answer. I want a second opinion not the same work showed. PRASAD DO NOT ANSWER PLEASE. Thank you for your work though. Just want a second opinion

Revenues generated by a new fad product are forecast as follows: Year Revenues $54,000 2 30,000 20,000 10,000 Thereafter 0 w Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year. The product requires an immediate investment of $50,000 in plant and equipment.

a. What is the initial investment in the product? Remember working capital. Initial investment $ 55400

b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firms tax rate is 30%, what are the project cash flows in each year? (Enter your answers in thousands of dollars. Do not round intermediate calculations. Round your answers to 2 decimal places.) Year WN Cash Flow $ 25050 152501 11750 7250

c. If the opportunity cost of capital is 12%, what is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV $ -7270.2

d. What is project IRR? (Do not round intermediate calculations. Round your answer to 2 decimal places.) IRR 4.27 %. Get Finance homework help today