s. New Car Development Cost $12,000,000 Marketing Cost $250,000 New Car Variable Cost per car $49,600...

s.

New Car Development Cost	$12,000,000
Marketing Cost	$250,000
New Car Variable Cost per car	$49,600
New Car Fixed Costs per Year	$35,000,000
New Car Sales Volume Year 1	5,750
New Car Sales Volume Year 2	6,437
New Car Sales Volume Year 3	4,744
New Car Sales Volume Year 4	3,325
New Car Sales Volume Year 5	2,723
New Car Unit Price	$80,000
New Car Equipment	450,000,000
New Car Equipment Depreciation	7 Year MACRS Schedule
Value of Equipment after 5 Years	355,000,000
Existing Car Sales Volume if New Car is not introduced Year 1	12,000
Existing Car Sales Volume if New Car is not introduced Year 2	10,750
Existing Car Sales Volume if New Car is not introduced Year 3	8,700
Price of Existing Car	$35,000
Variable Cost per Existing Car	$19,950
Fixed Cost of Existing Cost Per Year	$25,000,000
Sales Volume of Existing Car if New Car is introduced Year 1	11,000
Sales Volume of Existing Car if New Car is introduced Year 2	9,750
Sales Volume of Existing Car if New Car is introduced Year 3	7,700
Existing Car Unit Price if New Car is introduced	$32,000
New Working Capital of the Project, changes occur in Year 1	20% of Sales
Corporate Tax Rate	25%
Cost of Capital	14%

New Car Development Cost	$12,000,000
Marketing Cost	$250,000
New Car Variable Cost per car	$49,600
New Car Fixed Costs per Year	$35,000,000
New Car Sales Volume Year 1	5,750
New Car Sales Volume Year 2	6,437
New Car Sales Volume Year 3	4,744
New Car Sales Volume Year 4	3,325
New Car Sales Volume Year 5	2,723
New Car Unit Price	$80,000
New Car Equipment	450,000,000
New Car Equipment Depreciation	7 Year MACRS Schedule
Value of Equipment after 5 Years	355,000,000
Existing Car Sales Volume if New Car is not introduced Year 1	12,000
Existing Car Sales Volume if New Car is not introduced Year 2	10,750
Existing Car Sales Volume if New Car is not introduced Year 3	8,700
Price of Existing Car	$35,000
Variable Cost per Existing Car	$19,950
Fixed Cost of Existing Cost Per Year	$25,000,000
Sales Volume of Existing Car if New Car is introduced Year 1	11,000
Sales Volume of Existing Car if New Car is introduced Year 2	9,750
Sales Volume of Existing Car if New Car is introduced Year 3	7,700
Existing Car Unit Price if New Car is introduced	$32,000
New Working Capital of the Project, changes occur in Year 1	20% of Sales
Corporate Tax Rate	25%
Cost of Capital	14%

New Car Development Cost	$12,000,000
Marketing Cost	$250,000
New Car Variable Cost per car	$49,600
New Car Fixed Costs per Year	$35,000,000
New Car Sales Volume Year 1	5,750
New Car Sales Volume Year 2	6,437
New Car Sales Volume Year 3	4,744
New Car Sales Volume Year 4	3,325
New Car Sales Volume Year 5	2,723
New Car Unit Price	$80,000
New Car Equipment	450,000,000
New Car Equipment Depreciation	7 Year MACRS Schedule
Value of Equipment after 5 Years	355,000,000
Existing Car Sales Volume if New Car is not introduced Year 1	12,000
Existing Car Sales Volume if New Car is not introduced Year 2	10,750
Existing Car Sales Volume if New Car is not introduced Year 3	8,700
Price of Existing Car	$35,000
Variable Cost per Existing Car	$19,950
Fixed Cost of Existing Cost Per Year	$25,000,000
Sales Volume of Existing Car if New Car is introduced Year 1	11,000
Sales Volume of Existing Car if New Car is introduced Year 2	9,750
Sales Volume of Existing Car if New Car is introduced Year 3	7,700
Existing Car Unit Price if New Car is introduced	$32,000
New Working Capital of the Project, changes occur in Year 1	20% of Sales
Corporate Tax Rate	25%
Cost of Capital	14%

Can you and your team prepare the income statement table, the operating cash flow (OCF) table, and the total cash flow from assets (CFFA) table for this project?

Expert Solution

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