chap 12 solution

chap 12 solution - Purchase-65000 Install-5000-70000...

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Year 0 year 1 Year 2 Year 3 Sales 61000 61000 61000 Expenses ` 31000 31000 31000 EBITDA 30000 30000 30000 Deprectiation 33% 45% 15% 93% Depreciation 23100 31500 10500 Purchases 70000 EBIT 6900 -1500 19500 year 1 deprectit 23100 taxes 40% 2760 -600 7800 year 2 31500 PAT 4140 -900 11700 year 3 10500 Add depreciation 23100 31500 10500 4900 Operating cash flow 27240 30600 22200
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Unformatted text preview: Purchase-65000 Install-5000-70000 NWC-10000 10000 Sell old machine 10000 15000 Book value 4900 Gain on sale 10000 10100 Profitability Index taxes 4000 4040 $79,436.00 Sell old - taxes 6000 10960 1.07 FCF / incremental-74000 27240 30600 43160 NPV $5,436.00 IRR 16%...
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This note was uploaded on 12/19/2011 for the course BUS M 301 taught by Professor Jimbrau during the Fall '11 term at BYU.

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