Moving to another question will save this response. Question 6 You work for DXG in Dubai as a financial analyst. You wer
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Moving to another question will save this response. Question 6 You work for DXG in Dubai as a financial analyst. You wer
question will save this response. Question 6 You work for DXG in Dubai as a financial analyst. You were asked to assist your manager with evaluating a new project which will be in the USA. The investments and the financial information for the new project are detailed below The management of the company would like to recover their investment in 3 years' time. The cost of capital for the project is 12%. Corporation tax in the USA is 35% 0 Periods (All figures in million 3) 1 2 3 235 576 1020 105 171 472 45 70 98 Sales Cost of goods sold Other costs Depreciation Investment 80 80 80 240 Required: A Calculate the cash flows for the project. (5 marks) B. Calculate the payback period for the project and explain whether the company should accept the project or not. (5 marks)
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