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# FIN 615 NPV and IRR calculations Cost of Capital Time/yr Cash flow Input here Discounted CF NPV PV factor IRR 10.00% 0 1 2 3 4 5 0 0 0 0 0 0 0...

Compute the NPV and IRR with the following information in the Excel spreadsheet:

• WACC = 110%
• Initial investment outlay of \$30 million, consisting of \$25 million for equipment and \$5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
• Project and equipment life: 5 years
• Sales: \$25 million per year for five years
• Assume gross margin of 60% (exclusive of depreciation)
• Depreciation: Straight-line for tax purposes
• Selling, general, and administrative expenses: 10% of sales
• Tax rate: 35%
FIN 615 NPV and IRR calculations Cost of Capital 10.00% Time/yr 0 1 2 3 4 5 Cash flow Input here Discounted CF 0 0 0 0 0 0 NPV 0 =cf1/((1+n)^1=cf2/((1+n)^2)=cf3/((1+n)^3)=cf4/((1+n)^4)=cf5/((1+n)^5) PV factor 0.909090909 0.826446281 0.7513148009 0.6830134554 0.6209213231 IRR Err:523

Refer to the Excel Attached for the... View the full answer

FIN 615
NPV and IRR
calculations
Initial Investment
Project Equipment Life
=
Depriciation =
25000000/5 Year
Sales
COGS
Gross Profit 30000000
5
5,000,000 Years Less Depriciation
Less: Selling,...

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