As a financial aralyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $ plus $ for
Installation. Annual sales would be units at a price of $ per cartridge, and the project's life would be years. Current assets would increase by
$ and payables by $ At the end of years, the equipment could be sold for $ Deprectition woutd be based on the Macks year
class; so the applicable rates would be and Variable costs would be of sales revenues, foxed costs excluding depreciation would
be $ per year, the marginal tax rate is and the corporate WACC is
What is the required investment, that is the Year project cash, flow?
What are the project's annual net cash flows?
What is the terminat year profect cast flow?
You did a scenario analysis to better understand the project's NPW:
by if the CV is or less: Then a revised NPV is calculated. What WACC whould be uned for this project?
