Do the cash flow calculations correct? Why? ID Details Year o Year 1...

50.1K

Verified Solution

Question

Accounting

Do the cash flow calculations correct? Why?

image

ID Details Year o Year 1 Year 2 Year 3 Year 4 Year 5 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 A Cash Inflow 1. Total sales 2. Equity: a. Investment b. Working capital 3. Residual Total Cash inflow for NPV, IRR, and PI 523,070,000 1,113,240,000 1,636,310,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 1,224,000,000 523,070,000 B Cash outflow 1. Investment 2. Variable costs 3. Fixed costs 4. Tax 1,007,640,000 105,600,000 9,720,750 1,122,960,750 1,122,960,750 1,007,640,000 105,600,000 9,720,750 1,122,960,750 1,122,960,750 1,007,640,000 1,007,640,000 1,007,640,000 105,600,000 105,600,000 105,600,000 9,720,750 9,720,750 9,720,750 1,122,960,750 1,122,960,750 1,122,960,750 1,122,960,750 1,122,960,750 1,122,960,750 Total Cash outflow for NPV, IRR, and PI 523,070,000 523,070,000 C Net Cash Flow (NCF) D Cash flow for NPV, IRR, and PI Discount factor (14%) Present value E Cummulative (NPV) 1,113,240,000 101,039,250 (523,070,000) 101,039,250 0.877 (523,070,000) 88,630,921 (523,070,000) (434,439,079) 1 101,039,250 101,039,250 101,039,250 101,039,250 101,039,250 101,039,250 0.769 0.675 0.592 77,746,422 68,198,616 59,823,347 (356,692,657) (288,494,041) (228,670,694) 101,039,250 101,039,250 0.519 52,476,620 (176,194,074)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students