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Good evening!! Can someone please answer this ques...

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Good evening!! Can someone please answer this question for me before midnight? I would greatly appreciate it! Thank you in advance! Houston Inc. is considering a project which involves building a new refrigerated warehouse which will cost $7,000,000 at year = 0 and which is expected to have before tax operating cash flows of $500,000 at the end of each of the next 2The Net Working Capital required initially is $50,000, no additional NWC is required after year 0. The companys corporate tax rate is 25%. Depreciation of $350,000 is included in the before tax operating cash flow. In year 20 the asset can be sold before tax at $75,000. Part I: If Houston's WACC is 8 percent, what is the projects NPV? IRR? PI? Payback? Determine the capital budget for Years 0 20 and perform the necessary capital budget analysis. Part II: The risk/sensitivity factor is WACC. Should WACC increase to 8.5 percent, could this influence your decision on the project? What would happen to NPV?,I actually can't change the deadline. It's due today by midnight...,Is there another tutor online that can answer it for me??,OMG! Thank you sooo very much Rachel! I know you had me change the due date but it's actually do tonight by midnight. If it's not asking too much can you please try to have it done by then? I will send you a gift card on friday to show my appreciation if you can!! Thanks again!

 

Paper#12006 | Written in 18-Jul-2015

Price : $25
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