- Please Do It Correctly 1 (23.88 KiB) Viewed 18 times
... please do it correctly..
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answerhappygod
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... please do it correctly..
... please do it correctly..
Q4) The projected costs for a new plant are given below (all numbers are in $ 10º): Land cost- $ 0.5 Fixed capital investment -$100 (all spend in first year) Working capital- $12 Plant start-up at end of year one Cost of manufacturing (without depreciation) - $50 Tax rate -10% Depreciation method=Current MACR over 5 years Project life time is six years after startup Revenue = 120 Salvage value of the plant - 10 For this project, do the following: a. Draw a cumulative (non-discounted) after-tax cash flow diagram. [10 Marks] b. From Part (a), calculate the following nondiscounted profitability criteria for the project: (i) Cumulative cash position and cumulative cash ratio [10 Marks] (ii) Payback period [10 Marks] (iii) Rate of return on investment Marks] [10
Q4) The projected costs for a new plant are given below (all numbers are in $ 10º): Land cost- $ 0.5 Fixed capital investment -$100 (all spend in first year) Working capital- $12 Plant start-up at end of year one Cost of manufacturing (without depreciation) - $50 Tax rate -10% Depreciation method=Current MACR over 5 years Project life time is six years after startup Revenue = 120 Salvage value of the plant - 10 For this project, do the following: a. Draw a cumulative (non-discounted) after-tax cash flow diagram. [10 Marks] b. From Part (a), calculate the following nondiscounted profitability criteria for the project: (i) Cumulative cash position and cumulative cash ratio [10 Marks] (ii) Payback period [10 Marks] (iii) Rate of return on investment Marks] [10