Evaluation of project proposal
Not what you're looking for?
Please see attachment.
You are in the finance department of a firm and you are evaluation a project proposal. You have the developed the following financial projections and you are calculating:
a. The incremental cash flows of the project.
b. The net present value of the project given a discount rate of 15%.
The corporate tax rate is 34% and the financial projections are in thousands.
year 0 year 1 year 2 year 3 year 4 year 5
Sales revenue 10,000 10,000 10,000 10,000 10,000
Operating costs 3,000 3,000 3,000 3,000 3,000
Investment 17,500
Depreciation 3,500 3,500 3,500 3,500 3,500
Net working capital 300 350 400 300 200 0
Purchase this Solution
Solution Summary
This shows the steps to evaluate a project proposal
Solution Preview
The corporate tax rate is 34% and the financial projections are in thousands.
year 0 year 1 year 2 year 3 year 4 year 5
Sales revenue 10,000 10,000 10,000 10,000 10,000
Less Operating ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.