What is the cash flow for year 0? (express answer as a negative...)What is the cash flow for year 1?What is the NPV of the project? (Hint: Be careful about rounding the WACC here!)
A firm has projected the tollowing financials for a possible project
YEAR
0
1
2
3
4
5
Sales
139,094.00
139,094.00
139,094.00
139,094.00
139,094.00
Cost of Goods
68,318.00
68,318.00
68,318.00
68,318.00
68,318.00
S&A
30,000.00
30,000.00
30,000.00
30,000.00
30,000.00
Depreciation
23.933.40
23,933.40
23,933.40
23,933.40
23,933.40
Investment in NWC
1,087.00
551.00
551.00
551.00
551.00
551.00
Investment in Gross PPE
119,667.00
The firm has a capital structure of 37.00% debt and 63.00% equity.The cost of debt is 8.00%,while the cost of equity is estimated at 15.00%. The tax rate facing the firm is 40.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year)
What is the cash flow for year o? (express answer as a negative...)