Gaewelyn is considering opening a new business for a longterm care facility. The initial investment for the business is $ which includes constructing the housing unit and purchasing other assets. For tax purposes, the projected salvage value of all the assets is $ The government requires depreciating the assets using the straightline method over the businesss life of years. Gaewelyn is trying to estimate the net cashflows after tax for this business. She has already figured out that the business will generate an annual aftertax cash inflow of $ from the operation. She now needs your help to estimate the net cash inflow that she will receive from selling the facility's assets at the end of years. Gaewelyn's required return is
Required:
Gaewelyn estimates that, if the economic is booming at the end of the years, she can sell the assets for $ Assuming the tax rate of what is the net aftertax cashflow Gaewelyn will receive from selling her assets at the end of years? Please round your answer to the nearest dollar. $
If Gaewelyn is able to sell her assets for $ as mentioned in above, what is the Internal Rate of Return IRR for Gaewelyns business? Please round your answer to two decimal points, ie XXXX
Gaewelyn estimates that, if the economy is in recess at the end of the years, she can sell the assets for $ Assuming the tax rate of what is the net aftertax cashflow Gaewelyn will receive from selling her assets at the end of years? Please round your answer to the nearest dollar. $
If Gaewelyn is able to sell her assets for $ as mentioned in above, what is the Net Present Value NPV for Gaewelyns business? Please round your answer to two decimal points $