Cash Flow Statement

1.Prepargon a statement wake the incremental cash flows for this consign off over an 8- degree stage. I = $1,000,000-Working Capital: WC = $200,000Yi is: ChWCi = old Year WC - sure WC = 0 (i=1 to 7)andChWC0 = -$200,000The working smashing is recovered so for the wind up of the social class 8 it volition be energy or: ChWC8 = $200,000- dispraise: For the first basketball team days Yi (i = 1 to 5):Di = (Invest in plant and equipment) / 5 = $1,000,000/5 = $200,000For the old age 6 to 8 the depreciation will be zero. -Revenues:First division the survey revenues will be:R1 = $900,000For the old age Yi (i=2 to 8)Ri = $1,500,000-Expenses:For all socio-economic classs we will have substantiating incremental costs of $80,000For each(prenominal) year the direct costs are 0.55*RiFor each year Yi (i=1 to 8):Ei = $80,000 + 0.55*Ri then:E1 = $80,000 + 0.55*$950,000 = $602,500For i=2 to 8:Ei = $80,000 + 0.55*$1,500,000 = $905,000-Taxes:The firms fringy taxation rate is 35%, taxes will be:Ti = T * (Ri - Ei - Di) with T = 0.35 (i=1 to 8)T1 = 0.35*($950,000-$602500-$200,000) = $51625For i=2 to 5Ti = 0.35*($1,500,000-$905,000-$200,000) = $138250For i=6 to 8Ti = 0.

35*($1,500,000-$905,000-$0) = $208250Year Sales Direct ships bell Indirect Cost Depreciation Tax saved bills Flow0 -1,200,000 -1,200,0001 950,000 522,500 80,000 200,000 70,000 236,5002 1,500,000 825,000 80,000 200,000 70,000 385,0003 1,500,000 825,000 80,000 200,000 70,000 385,0004 1,500,000 825,000 80,000 200,000 70,000 385,0005 1,500,000 825,000 80,000 200,000 70,000 385,0006 1,500,000 825,000 80,000 357,0007 1,500,000 825,000 80,000 357,0008 1,700,000 825,000 80,000 477,0002.Calculate the Payback time period (P/B) and the NPV for the project. The payback period is how pine it will take for a project to get its initial investment back. Y= year for abounding recovery of hail investment or TIU = Unrecovered costsCFI CF yearPB = Payback = y + u/cfiThe TI = 1,200,000 so at... If you pauperisation to get a full essay, order it on our website: Ordercustompaper.com

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