Select Page

Your Perfect Assignment is Just a Click Away

Starting at \$8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!

## Applied Managerial Finance IP4

#### Applied Managerial Finance IP4

Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

Over lunch, you and Mary meet to discuss next steps with the expansion project.

Do we have everything we need on sales and costs? you ask. It must be time to compute the net present value (NPV) and internal rate of return (IRR) of the Apix expansion project.
We have the data from James and Luke regarding projected sales and costs, respectively, for the food packaging project, says Mary. It is feasible to project that we will receive a tax break from this implementation. I have information from our audit firm that indicates that future depreciation methods for taxes will be straight-line; however, the corporate rates will be reduced to 35% as we assumed in our weighted average cost of capital (WACC) calculation.
That sounds good, you say.
Right,” says Mary. “You can use a WACC of 10% for the computation of the NPV and comparison for IRR.”
Ive got the information I need from Luke and James, you say. “Does this look right to you? Heres what they gave me, you say, as you hand a sheet of paper to Mary.Lets look at this now while were together, she says.

The information you hand to Mary shows the following:

• Initial investment outlay of \$30 million, consisting of \$25 million for equipment and \$5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
• Project and equipment life: 5 years
• Sales: \$25 million per year for five years
• Assume gross margin of 60% (exclusive of depreciation)
• Depreciation: Straight-line for tax purposes
• Selling, general, and administrative expenses: 10% of sales
• Tax rate: 35%

It looks good, says Mary. Use this information from Luke and James to compute the cash flows for the project.
No problem, you say.
Then, compute NPV and IRR of the project using the Excel spreadsheet I sent earlier today, says Mary. Use the IRR financial function for the computation of IRR.
Okay, you say. “Ill submit my Excel file showing the computation of cash flows, NPV, and IRR by the end of week so you can look at it over the weekend.
Thanks, says Mary.

Complete the above worksheet for this assignment. (worksheet is also attached)

"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

## Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.