In: Finance

Real Madrid stadium requires seats for home and away end. The seating project results in $1.2 MM/yr of annual savings. The seating project requires a fixed capital investment of $3.5 MM. The working capital investment is taken as 15/85 of the fixed capital investment. The annual operating cost of the stadium seating is $0.5 MM/yr. Straight-line depreciation is calculated over 10 years (no salvage value). The corporate income tax rate for the project is 35%. Assuming a discount rate of 15%.. Assume that the FCI and WCI are expended immediately at the outset of the project.

a. Determine the NPV after 10 years, the Discounted Cash Flow Payback Period and the Discounted Cash Flow Return on Investment

Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |

Capital Investment | -3500000 | ||||||||||

Working capital | -617647.0588 | ||||||||||

Annual Saving | 1200000 | 1200000 | 1200000 | 1200000 | 1200000 | 1200000 | 1200000 | 1200000 | 1200000 | 1200000 | |

Cost | -500000 | -500000 | -500000 | -500000 | -500000 | -500000 | -500000 | -500000 | -500000 | -500000 | |

cash Flow | 700000 | 700000 | 700000 | 700000 | 700000 | 700000 | 700000 | 700000 | 700000 | 700000 | |

Depreciation | -350000 | -350000 | -350000 | -350000 | -350000 | -350000 | -350000 | -350000 | -350000 | -350000 | |

Cash flow from opeartion | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | |

Tax | -122500 | -122500 | -122500 | -122500 | -122500 | -122500 | -122500 | -122500 | -122500 | -122500 | |

Cash flow after tax | 227500 | 227500 | 227500 | 227500 | 227500 | 227500 | 227500 | 227500 | 227500 | 227500 | |

Add Depreciation | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | 350000 | |

return of woking capital | 617647.0588 | ||||||||||

Net cash flow | -$41,17,647.06 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $5,77,500.00 | $11,95,147.06 |

Discount rate | 15% | ||||||||||

Discounted Cash flow | -$41,17,647.06 | $5,02,173.91 | $4,36,672.97 | $3,79,715.62 | $3,30,187.50 | $2,87,119.56 | $2,49,669.19 | $2,17,103.64 | $1,88,785.77 | $1,64,161.54 | $2,95,422.07 |

NPV | -$10,66,635.27 | ||||||||||

Discounted Cash Flow Return on Investment | 8% | ||||||||||

Discounted Payback | more than 10 years |

In Python
There are three seating categories at a stadium. Class A seats
cost $20, Class B seats cost $15, and Class C seats cost $10. Write
a program that asks how many tickets for each class of seats were
sold, then display the amount of income generated from ticket
sales. \
your program MUST contain a main
function, a calcIncome function, and a
showIncome function.
Your main function should get the number of
seats sold for each category. The...

n Python
There are three seating categories at a stadium. Class A seats
cost $20, Class B seats cost $15, and Class C seats cost $10. Write
a program that asks how many tickets for each class of seats were
sold, then display the amount of income generated from ticket
sales. \
your program MUST contain a main
function, a calcIncome function, and a
showIncome function.
Your main function should get the number of
seats sold for each category. The...

A project to produce rocker seats requires a $10 million
investment. If the project is financed on an all equity basis, the
after tax cash flows are $8 million for 10 years. The cost of
unlevered equity for such a solar heater project is 12%. The firm
intends to raise $5 million in debt financing that will be repaid
in equal installments in 10 years. The interest rate on the debt is
8%. Is the project worthwhile? Use APV method.Tax...

A project requires an initial investment of $1.2 million. It
expects to generate a perpetual cash flow. The first year cash flow
is expected at $100,000. The cash flows are then expected to grow
at 1.25% forever. If the cost of capital for this project is 11%,
what is the project's NPV?
Group of answer choices
-$0.480 million
$0.265 million
$7,177 million
-$0.174 million
-$0.265 million
$0.174 million

A project requires an initial investment of $1.2 million. It
expects to generate a perpetual cash flow. The first year cash flow
is expected at $100,000. The cash flows are then expected to grow
at 1.25% forever. The appropriate cost of capital for this project
is 11%. What is the project's IRR and should it be accepted based
on the IRR rule?
Group of answer choices
IRR is 9.6%; project should not be accepted
IRR is 9.6%; project should be...

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earth, haul it away to a borrow area located 3 miles away. The
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loose CY. Each Scraper has a typical cycle time of 20 minutes due
to the rough terrain at the site. The contractor can purchase one
scraper but will have to rent additional scrapers...

The “company” referred to below is Home Depot. This is requires
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What are the current assets of the company?
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How does this compare to the Industry Average?
List one Contingent Liabilities, if any, that the company has
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Describe what a contingent Liability is and when it is...

One investing firm is assessing an opportunity of a real estate
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of the first year to start up the first complex and 1.6 million CAD
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Hubrey Home Inc. is considering a new three-year expansion
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Hubrey Home Inc. is considering a new three-year expansion
project that requires an initial fixed asset investment of $3.2
million. The fixed asset falls into Class 10 for tax purposes (CCA
rate of 30% per year), and at the end of the three years can be
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