WACC CF1 CF2 CF3 CF4 CF5 Initial Outlay ($65,000,000) Cash Flows (Sales) $50,000,000 $25,500,000 $65,500,000 $45,000,000 $55,000,000 $25,000,000 $25,500,000 $25,500,000 $25,500.000 $25,500,000...


What are the implications of these calculations? In other words, based on each of the calculations, and being mindful of the need to balance portfolio risk with return, would you recommend that the company pursue the investment? Why or why not? Be sure to substantiate claims.


WACC<br>CF1<br>CF2<br>CF3<br>CF4<br>CF5<br>Initial Outlay<br>($65,000,000)<br>Cash Flows (Sales)<br>$50,000,000<br>$25,500,000<br>$65,500,000<br>$45,000,000<br>$55,000,000<br>$25,000,000<br>$25,500,000<br>$25,500,000<br>$25,500.000<br>$25,500,000<br>Operating Costs (excluding Depreciation)<br>(13,000,000)<br>(13,500,000)<br>(3,375,000)<br>(10,125,000)<br>Depreciation Rate of 20%<br>Operating Income (EBIT)<br>Income Tax (Rate 25%)<br>After-Tax EBIT<br>(13,000,000)<br>27,000,000<br>6,750,000<br>20,250,000<br>(13,000.000)<br>(13,000,000)<br>(13,000,000)<br>16,500.000<br>11,500,000<br>6.500,000<br>4,125,000<br>12,375,000<br>2,875,000<br>8,625,000<br>1,625,000<br>4,875,000<br>+ Depreciation<br>Cash Flows<br>13,000,000<br>13,000,000<br>13,000,000<br>13,000,000<br>13,000,000<br>17,875,000<br>($65,000,000)<br>25,375,000<br>2,875,000<br>21,625,000<br>33.250,000<br>Select from drop<br>down below:<br>$15,404,422.60 ACCEPT<br>NPV<br>IRR<br>19% ACCEPT<br>

Extracted text: WACC CF1 CF2 CF3 CF4 CF5 Initial Outlay ($65,000,000) Cash Flows (Sales) $50,000,000 $25,500,000 $65,500,000 $45,000,000 $55,000,000 $25,000,000 $25,500,000 $25,500,000 $25,500.000 $25,500,000 Operating Costs (excluding Depreciation) (13,000,000) (13,500,000) (3,375,000) (10,125,000) Depreciation Rate of 20% Operating Income (EBIT) Income Tax (Rate 25%) After-Tax EBIT (13,000,000) 27,000,000 6,750,000 20,250,000 (13,000.000) (13,000,000) (13,000,000) 16,500.000 11,500,000 6.500,000 4,125,000 12,375,000 2,875,000 8,625,000 1,625,000 4,875,000 + Depreciation Cash Flows 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 17,875,000 ($65,000,000) 25,375,000 2,875,000 21,625,000 33.250,000 Select from drop down below: $15,404,422.60 ACCEPT NPV IRR 19% ACCEPT

Jun 05, 2022
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