Recent Question/Assignment

PROJECT EVALUATION - SUBMISSION
Note: All values to be in $thousands & all expenses and cash outflows are to be entered as negative numbers. IMPORTANT NOTE
Weighted Average Cost of Capital: Year 1 2 3 4
Opening Book Value
less Depreciation
Tax Rate: Closing Book Value The description fields on this tab are designed to use dropdown boxes. Unless you enter descriptions that exactly match the descriptions in those dropdown boxes, you will be marked as incorrect. If your device or software does not support dropdown boxes, it is critically important that you enter descriptions that exactly match the descriptions in the folllowing list, including capitalisation, spelling and punctuation. If you find you cannot select from dropdown boxes when entering descriptions in the fields to the left, it is strongly recommended that you copy and paste descriptions from the following list.

Cash Flow 0 1 2 3 4 5
less Wages
less Feasibility Study
Incremental EBIT 0.00 0.00 0.00 0.00 Salvage Value
less Depreciation
plus Depreciation
less Maintenance
Incremental Earnings 0.00 0.00 0.00 0.00 Revenue
less Tax
Net Working Capital
less Opportunity Cost (Rent)
Initial Outlay
less Tax on Profit on Sale of Asset

Incremental Free Cash Flows 0.00 0.00 0.00 0.00 0.00 0.00
PV of Incremental FCFs
NPV
Should the project be accepted? Why/why not? Please select all of the following that apply.
The project should be accepted.
The project should not be accepted.
The total number of dollars to be received in the future is greater than the cash outflow in Year 0.
The total number of dollars to be received in the future is less than the cash outflow in Year 0.
The present value of the cash flows to be received in the future is greater than the cash outflow in Year 0.
The present value of the cash flows to be received in the future is less than the cash outflow in Year 0.
The project should be accepted because it will make an accounting profit for the firm.
The project should not be accepted because it will make an accounting loss for the firm.
The value of the firm will increase if this project is accepted.
The value of the firm will decrease if this project is accepted.