What is the initial investment for this venture

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Reference no: EM131499744

In excel answer the following:

Initial advertising and marketing expenses = $1,160,000

Initial cost (price tag) of new equipment (assume 5-year SL) = $400,000

Investment in training completed last year = $200,000

Incremental sales volume expected (in units, years 1-3) = 100,000

Incremental sales volume expected (in units, years 4-6) = 120,000

Selling price per unit = $30

Cost to manufacture (per unit) = $16

Other incremental cash expenses (years 1-6) = $400,000

Project salvage value end of year 6 = $50,000

Corporate tax rate = 34%

Corporate cost of capital = 14%

What is the Initial Investment for this venture?

What is the Depreciable Base for the project?

What is the 3rd year's operating cash flow [OCF(3)]?

What is the 4th year's operating cash flow [OCF(4)]?

What is the project's net Terminal Value?

What is the project's NPV?

What is the project's IRR?

What is the project's MIRR?

Reference no: EM131499744

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