Summer Tyme, Inc. has cash available and is considering a new three-year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed assets will be depreciated straight-line to zero over its three-year tax life. The fixed assets will have a market value of $200,000 at the end of the project. The project is estimated to generate following revenues during those three years: $2,000,000 for year one, $2,500,000 for year two, and $3,000,000 for year three. Costs are equal to 20% of the same yearsales. The project net working capital is equal to 10% of the next year’s revenue. The tax-rate is 35%. What are the project’s net cash flows for years 0-3? What is the IRR on this project?
https://nerdytermpapers.com/wp-content/uploads/2021/10/nerdytermpapers-300x75.png 0 0 admin https://nerdytermpapers.com/wp-content/uploads/2021/10/nerdytermpapers-300x75.png admin2022-07-15 13:08:132022-07-15 13:08:13Summer tyme irr? | Business & Finance homework help
How Our Service is Used:
nerdytermpapers essays are NOT intended to be forwarded as finalized work as it is only strictly meant to be used for research and study purposes. nerdytermpapers does not endorse or condone any type of plagiarism.