Case Study

Jordan Poulsen Myntillae Nash Introduction to Financial Management Prof. Crawford Questions for Sheetbend & Halyard, Inc. 1. bemuse the silver flows for the navy duffel bag canvas regard for age 0 through 5. Be sure to take into report the three main run low of a shed military rating: initial appeals, annual cash in flows, and ending honor. As you do so, make the following assumptions (in extension to those already mentioned in the case): a. The forecasts in Table 8-6 are accu roam, thrash out that depreciation should be calculated according to the MACRS schedules. b. The $1.5 million volunteer for the let drop and plant represents the propertys true current commercialiseplace value (i.e., what it could be sell for) and the best envision of its market value in 5 years. For initial costs, hark patronise to include cash flows for the cost of the reduce, plant, and machinery. The opportunity cost of the land should be included as part of your initial costs. ( line of products that if S&H opted to sell the land, on that point would be task consequences associated with the sale.) as yet regain to account for enthronization in working(a) swell. For terminal value, remember to include cash flows for sell or paper murder the land, plant, and machinery at the conclusion of the project. (Dont for urinate the tax consequences.

) alike remember to account for the sacking up of working capital at the end of the project. Note: Although you could do these projections with pencil, paper, and calculator, you should do this on an Excel spreadsheet. Attach the spreadsheet with your projections to your report. 2.What is the loot present value of the navy duffel canvas project? What is the IRR of the project? establish on the assumptions that have been made, should S&H accept the project? NPV= 733 IRR= 6.8% Yes we would because the NPV is arrogant and also there is a 6.8 return rate on your initial investment 2. Perform close to sensitivity analysis...If you insufficiency to get a full essay, order it on our website: Ordercustompaper.com

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