Navy - PROJECTIONS GIVEN IN THE CASE (Dollars in 1,000's):...

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Capital Budgeting with Unequal Project Lives and Compe For this case use the appropriate MACRS or straight line rates given below and a mate Also assume that the initial (year 1) per unit contract (bid) price will increase by 8% ea Use the "XXXXXX" cells to help with assumed "timing" of cash flows. Ex.: Lease paym PROJECTIONS GIVEN IN THE CASE (Dollars in 1,000's): Continuous Filament (CF) Project life 5 Number of units/year 100 Required Equipment: Cost $4,500.00  Cost in 3 years N/A Design life 10 ACRS life 5 Raw Materials: Per unit $125.00  Growth rate / year 7% Direct Labor: Per unit $12.80  Growth rate / year 3% General Overhead: 50% Maintenance contract $225.00  Lease $1,500.00  Transportation: Per unit $4.00  Growth rate / year 5% Required return (k) 15% Federal + state marginal tax rate 40% Bid price growth rate / year 8% Continuous Filament Method (CF) Depreciation Table: MACRS Depreciable Year Rate Basis 1 20.00% $4,500.00  2 32.00% $4,500.00  3 19.20% $4,500.00  4 11.52% $4,500.00  5 11.52% $4,500.00  6 5.76% $4,500.00  Salvage Value = Discounted Service Potential: Beginning Market Annual Year Value Payment 1 $4,500.00  $896.63  2 4,278.37  $896.63  3 4,023.49  $896.63 
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Navy - PROJECTIONS GIVEN IN THE CASE (Dollars in 1,000's):...

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