I need help finding the after tax salvage value, investment in net working capital, net cash flows, present value of net cash flows, and NPV. after tax WACC: 10.10% investment related cash flows:...


I need help finding the after tax salvage value, investment in net working capital, net cash flows, present value of net cash flows, and NPV.



after tax WACC: 10.10%




investment related cash flows:


invoice price of machinery: $500,000


shipping charges: $35,000


installation cost: $10,000


deprciable basis: $545,000


salvage value: $95,000


investment in net working captial: 20% of next years sales


tax rate: 30%




depreciation rates:


year 1: 0.3333


year 2: 0.4445


year 3: 0.1481


year 4: 0.0741




operating cash flows:


projects economic life: 4 years


year 1 unit sales: 3,200 units


unit growth: 4%


year 1 price per unit: $250.00/unit


year 1 cost per unit: $185.00/unit


inflation rate: 2.5%



Jun 07, 2022
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