Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    Project X: Wacc Years Units Sold Sale Price V.C Sales

    Uploaded by

    Jjjjjjjjjj
    Project x had an initial investment of Rs. 50,000 over 5 years. It was expected to produce 1,000 units per year and sell them for increasing prices between Rs. 15-43.92 per unit over the 5 years. Variable costs also increased each year between Rs. 5-6.801 per unit. The project had non-variable costs of Rs. 3,000-3,645 each year. The net present value was Rs. 25,472.80, the internal rate of return was 30%, and the modified internal rate of return was 22%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Project X: Wacc Years Units Sold Sale Price V.C Sales

    Uploaded by

    Jjjjjjjjjj
    19 views1 page
    Project x had an initial investment of Rs. 50,000 over 5 years. It was expected to produce 1,000 units per year and sell them for increasing prices between Rs. 15-43.92 per unit over the 5 years. Variable costs also increased each year between Rs. 5-6.801 per unit. The project had non-variable costs of Rs. 3,000-3,645 each year. The net present value was Rs. 25,472.80, the internal rate of return was 30%, and the modified internal rate of return was 22%.

    Original Description:

    Related to the questions

    Original Title

    FM

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Project x had an initial investment of Rs. 50,000 over 5 years. It was expected to produce 1,000 units per year and sell them for increasing prices between Rs. 15-43.92 per unit over the 5 years. Variable costs also increased each year between Rs. 5-6.801 per unit. The project had non-variable costs of Rs. 3,000-3,645 each year. The net present value was Rs. 25,472.80, the internal rate of return was 30%, and the modified internal rate of return was 22%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views1 page

    Project X: Wacc Years Units Sold Sale Price V.C Sales

    Uploaded by

    Jjjjjjjjjj
    Project x had an initial investment of Rs. 50,000 over 5 years. It was expected to produce 1,000 units per year and sell them for increasing prices between Rs. 15-43.92 per unit over the 5 years. Variable costs also increased each year between Rs. 5-6.801 per unit. The project had non-variable costs of Rs. 3,000-3,645 each year. The net present value was Rs. 25,472.80, the internal rate of return was 30%, and the modified internal rate of return was 22%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Project x Rs.

    years cashflows Initial Investment -50,000


    0 -50,000 No. of units producing 1,000
    1 1,000 Price per unit 15
    2 1,000 Cost per unit 5
    3 1,000 Non-Variable cost 3,000
    4 1,000 working cost 5,000
    5 1,000 Tax rate 25%
    equity 70%
    debt 30%
    cost of equity 15%
    WACC 13% cost of debt 10%

    years units sold sale price V.C Sales


    1 1,000 30 5 30000
    2 1000 33 5.4 33000
    3 1000 36.3 5.832 36300
    4 1000 39.93 6.298 39930
    5 1000 43.92 6.801 43920

    Years Sales V.C N.V.C Dep O.P tax 25% O.I


    0 -55,000
    1 30000 5000 3000 16500 5500 1375 4125
    2 33000 5400 3150 22500 1950 487 1463
    3 36300 5832 3307 7500 19661 4915 14746
    4 39930 6298 3472 3500 26659 6664 19995
    5 43920 6801 3645 0 33474 8368 25106

    N.C.F
    -55,000
    20625
    NPV 25,472.80 23963
    IRR 30% 22246
    MIRR 22% 23495
    25106

    You might also like