NEED IN 1 HOUR!!!! suppose a firm is considering a capital budgeting project which requires upfront (Yr0)...

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NEED IN 1 HOUR!!!!

suppose a firm is considering a capital budgeting project whichrequires upfront (Yr0) $3,000,000 investment in fixed assets and a$185,000 upfront investment in NWC. The firm expects to be able tosell the purchased fixed assets at the end of year 3 for $410,000.The fixed assets fall into the three year MACRS class. The companyalso expects to recover HALF of its upfront NWC investment at theend of year 3. The project supported by the new fixed assets isprojected to generate $2,350,000 in annual revenues with annualvariable and fixed operating expenses (including depreciation) of$810,000. The firm's applicable tax rate is 35%

(MACRS FACTORS FOR 3 YEAR CLASS ASSETS : YR1= .3333 YR2 =.445YR3 = .1481 YR4 = .0741

QA - what annual depreciation deductions will the firm takeusing MACRS schedule?

QB - What is the book value of the fixed assets after year3?

QC - What year 3 CF will be realized from sale of fixedassets?

QD - what are the annual CFs from this project?

QE - what is the net present value (NPV) of this project if theappropriate discount rate is 10%?

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NEED IN 1 HOUR!!!!suppose a firm is considering a capital budgeting project whichrequires upfront (Yr0) $3,000,000 investment in fixed assets and a$185,000 upfront investment in NWC. The firm expects to be able tosell the purchased fixed assets at the end of year 3 for $410,000.The fixed assets fall into the three year MACRS class. The companyalso expects to recover HALF of its upfront NWC investment at theend of year 3. The project supported by the new fixed assets isprojected to generate $2,350,000 in annual revenues with annualvariable and fixed operating expenses (including depreciation) of$810,000. The firm's applicable tax rate is 35%(MACRS FACTORS FOR 3 YEAR CLASS ASSETS : YR1= .3333 YR2 =.445YR3 = .1481 YR4 = .0741QA - what annual depreciation deductions will the firm takeusing MACRS schedule?QB - What is the book value of the fixed assets after year3?QC - What year 3 CF will be realized from sale of fixedassets?QD - what are the annual CFs from this project?QE - what is the net present value (NPV) of this project if theappropriate discount rate is 10%?

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