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%