Evaluating the project

I need to do some calculations using excel where it is necessary. I am trying to do it for a couple of days and I definitely need some help. The firm is planning a project, it will be 5 year project. THe company bought some land 3 years ego for $6 million.The land was appraised last week for $9.2 million. The company plans to built new plant on this land, its cost $14 million to build.The project requires $900000 in initial working capital investment.Tax rate is 35%. The firm has debt: 10000 of 8% coupon bonds outstanding, 15 years to maturity, selling for 92% of par. The bonds hvae 1 $1000 par value each and make semiannual payments. Common stock: 250,000 shres outstanding selling for $70 per share, the beta is 1.4 Preferred stock: 10000 shares of 6% oustanding, selling for $95 per shares. Market: 8%expected market premium, 5% risk-free rate. Calculate: 1)Total value of the firm 2) Project's initial time 0 chash flow, takinf into account all side effects. 3) It is more riskier project than company usually does, so management has told to use adjustment factor of + 2% to account for this risk. Find discount rate to use when evaluate this poject. 4)The manufacturing plant has an eight-year tax life, and Acme uses straight-line depreciation. At the end of the project, the plant can be scrapped for $5 million. What is the after-tax salvage value of this manufacturing plant? 5) The company will incur $350,000 in annual fixed costs. The plan is to manufacture 10,000 machines per year and sell them at $10,400 per machine; the variable production costs are $8,500 per machine. What is the annual operating cash flow (OCF) from this project? 6) forget all calculations and find NPV of the project. Should firm take this project?




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