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

jeff jeffy answered 8 months ago

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