PROPOSED ROBOTICS PROJECT ANSWER BOX AT ROW 35 Period 0 2 3 5 6 7 8 9 10 Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. Estimate of...
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# What formulas are used to calculate NPV, PI, IRR, and PP using the following data? src="/qa/attachment/10980255/" alt="Screen Shot 2019-12-10 at 12.57.04 PM.png" /> ATTACHMENT PREVIEW Download attachment Screen Shot 2019-12-10 at 12.57.04 PM.png PROPOSED ROBOTICS PROJECT ANSWER BOX AT ROW 35 Period 0 2 3 5 6 7 8 9 10 Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. Estimate of Incremental Gross Profit New Output (tons) 267,500.0 267,500.0 267,500.0 267,500.0 267,500.0 267,500.0 267,500.0 267,500.0 267,500.0 267,500.0 Lost Output-Construction -33,437.5 New Sales (Millions) 158.0 180.6 180.6 180.6 180.6 180.6 180.6 180.6 180.6 180.6 New Gross Margin 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 New Gross Profit 0.1 24.8 24.8 24.8 24.8 23.9 23.9 23.9 23.9 23.9 Old Output 250,000.0 250,000.0 250,000.0 250,000.0 250,000.0 250,000.0 250,000.0 250,000.0 250,000.0 250,000.0 Old Sales 168.8 168.8 168.8 168.8 168.8 168.8 168.8 168.8 168.8 168.8 Old Gross Profit 19.4 19.4 19.4 19.4 19.4 19.4 19.4 19.4 19.4 19.4 Incremental Gross Profit 2.3 5.4 5.4 5.4 5.4 4.5 4.5 4.5 4.5 4.5 2. Estimate of Incremental inventory New inventory 4.1 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7 Old inventory 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 Incremental inventory -0.4 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 3. Estimate of Incremental Depreciation New Depreciation 1.6 1.4 1.2 1.0 0.9 0.8 0.7 0.6 0.5 0.5 4. Overhead 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 5. Prelim. Engineering Costs 0.5 Pretax Incremental Profit 0.2 3.6 3.8 4.0 4.1 3.3 3.4 3.5 3.6 3.6 6. Cash Flow Adjustments Less Capital Expenditures -12.0 Add back Depreciation 1.6 1.4 1.2 1.0 0.9 0.8 0.7 0.6 0.5 0.5 Less Added inventory 0.4 -0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7. Free Cash Flow -12.0 1.9 3.3 3.9 3.8 3.8 3.1 3.1 3.0 3.0 3.0 NPV 19.9 PI -0.65734543 IRR 0.2 PP #VALUE!

NPV stands for net present value of the project. Net present value = Present value of cash inflows of project - Present value... View the full answer

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