Prepare a pro-forma statement by using assumptions to calculate the annual operating net cash flow for...

70.2K

Verified Solution

Question

Finance

Prepare a pro-forma statement by using assumptions to calculatethe annual operating net cash flow for three years to calculate thethe NPV and IRR.
Assess project feasibility using NPV and IRR method.
Company is Z-energy
For the data part you can refer to the Yahoo finance or assumeany relevant data according to the company

Answer & Explanation Solved by verified expert

3.9 Ratings (440 Votes)

Assume an asset purchased for 150000 with an interest rate of 10 pa The life of the asset is 3 years Cost of capital of the company is 10 Tax rate would be 30 Asset generates an income of 70000 95000 and 140000 in year 1 year 2 and year 3 respectively Depreciation per year asset value no of years of useful life 150000 3 50000 Therefore Depreciation per year 50000 Interest to be paid per year asset value 10 150000 10 15000 See Answer

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