Question
In: Finance
Category T0 T1 T2 T3 Investment −$9,910,109 Net working capital change -$667,000 $667,000 Operating cash flow...
|
Category |
T0 |
T1 |
T2 |
T3 |
|||
|
Investment |
−$9,910,109 |
||||||
|
Net working capital change |
-$667,000 |
$667,000 |
|||||
|
Operating cash flow |
$3,467,000 |
$4,050,000 |
$4,708,000 |
||||
|
Salvage |
$359,000 |
||||||
a) What is the IRR of the project?
b) At what adjusted WACCs will the company accept this project?
Solutions
Expert Solution
a) IRR = 11.13%
b)ADJUSTED WACC SHOULD BE LESS THAN 11.13% TO ACCEPT THE
PROJECT
jeff jeffy answered 1 year agoRelated Solutions
Category T0 T1 T2 T3 Investment -$3,605,000 Net working capital change -$ 236,000 $ 236,000 Operating...
Category
T0
T1
T2
T3
Investment
-$3,605,000
Net working capital change
-$ 236,000
$ 236,000
Operating cash flow
$1,483,000
$1,483,000
$1,483,000
Salvage
$ 287,000
Should Brawn accept or reject this project at an adjusted WACC
of 7.347.34%, 9.349.34%, or 11.3411.34%?
Calculate “Operating” Cash Flow, ΔNet Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow...
Calculate “Operating” Cash Flow, ΔNet Working Capital, Net
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Balance Sheet
2015
2016
Income Statement
2016
Cash
5800
5820
Sales
26500
All Other Current Assets
4000
4910
Various Operating Expenses
11900
Net Fixed Assets
6600
9200
Depreciation Expense
1400
Current Liabilities
7200
8870
Interest Expense
920
Long-term Liabilities
5700
6940
Gain on Sale of Asset
1020
Common Stock
2500
3380
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For project A, the cash flow effect from the change in net
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is expected to be 1,900 dollars at time 2?
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For project A, the cash flow effect from the change in net
working capital is expected to be 100 dollars at time 2, the level
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dollars at time 2. What is the cash flow effect from the change in
net working capital expected to be at time 1?
For project A, the change in net...
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net
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time 2. What is the level of current liabilities for project A
expected to be at time 1 if the level of current assets for project
A is expected to be 7,100 dollars at time 1?
For project A, the cash flow effect...
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net
working capital is expected to be 300 dollars at time 2 and the
level of net working capital is expected to be 2,500 dollars at
time 2. What is the level of current liabilities for project A
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For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net
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Consider the following code: lb $t0, 1($t1) sw $t0, 0($t2) Assume the followings. • The register...
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sw $t0, 0($t2)
Assume the followings.
• The register $t1 contains the content 0x1000,0000.
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Three instructors in a coordinated course, T1, T2, and T3 evaluates axam papers. T1 evaluates 20%...
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