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Can you help me with how to caculate the following : FIN 331 CAPEX Problem - TEM

ID: 2714393 • Letter: C

Question

Can you help me with how to caculate the following :

FIN 331 CAPEX Problem - TEMPLATE Fall 2015 Part I: Background Data:   Inputs (mill) Equipment Equipment Cost (= Depreciable base) $       350,000    Depreciation Basis $       350,000    Equipment MACRS class 5-year    Salvage % 18%    Salvage value ? Net Working Capital    Change in NWC $         50,000 Other Given Data 1 2 3 4 Sales growth % per year 25.0% 50.0% 30.0% Sales /year (units)               2,500 ? ? ? Sales price per unit $              200 Sales per year $                    - ? ? ? ? Variable cost (% of sales) 71.0% Variable cost per year $                    - ? ? ? ? Fixed Costs per year $         91,000 WACC 10.20% will transfer from WACC tab rounded Tax rate 35.0% will transfer from WACC tab    Part 2: Depreciation Calculations: 1 2 3 4 Equipment ? MACRS % (Eqpt-5 yr) 20.00% 32.00% 19.20% 11.52% Recovery Allowance ? ? ? ? Accumulated Depreciation ? ? ? ? Book Value ? ? ? ? Part 3: After-Tax Salvage Value Salvage Value ? ? ? ? Book Value ? ? ? ? Capital Gain/Loss ? ? ? ? Taxes ? ? ? ? Net SV (SV-Taxes) ? ? ? ? Total Net Salvage Value

Explanation / Answer

Can you help me with how to caculate the following : FIN 331 CAPEX Problem - TEM