Revenues Costs of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Net Income Capital Purchases Changes to NWC A. -$258,750.00 O B. -$153,046.63 Year O O C. $195,972.79 D. $201,324.52 -600,000 +36,000 Year 1 800,000 Year 2 Year 3 800,000 800,000 -320,000 -320,000 -320,000 480,000 480,000 480,000 -105,000 -105,000 -105,000 -200,000 -200,000 -200,000 175,000 175,000 175,000 Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8.5%, what is the net present value (NPV) of this project? -61,250 -61,250 -61,250 113,750 113,750 113,750 -12,000 -12,000 -12,000
Revenues Costs of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Net Income Capital Purchases Changes to NWC A. -$258,750.00 O B. -$153,046.63 Year O O C. $195,972.79 D. $201,324.52 -600,000 +36,000 Year 1 800,000 Year 2 Year 3 800,000 800,000 -320,000 -320,000 -320,000 480,000 480,000 480,000 -105,000 -105,000 -105,000 -200,000 -200,000 -200,000 175,000 175,000 175,000 Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8.5%, what is the net present value (NPV) of this project? -61,250 -61,250 -61,250 113,750 113,750 113,750 -12,000 -12,000 -12,000
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Question
![Revenues
Costs of Goods Sold
Gross Profit
Selling, General and Admin
Depreciation
EBIT
Income tax (35%)
Net Income
Capital Purchases
Changes to NWC
A. -$258,750.00
B. -$153,046.63
Year O
O C. $195,972.79
O D. $201,324.52
-600,000
+36,000
Year 1
800,000
Year 2 Year 3
800,000 800,000
-320,000 -320,000 -320,000
480,000 480,000 480,000
-105,000 -105,000 -105,000
-200,000 -200,000 -200,000
175,000 175,000 175,000
Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data
above. If the cost of capital is 8.5%, what is the net present value (NPV) of this project?
-61,250 -61,250 -61,250
113,750 113,750 113,750
-12,000 -12,000 -12,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8621ed9e-a7a7-4f45-8b79-b6e39c0adcd0%2F437177b8-a25c-47d8-8fab-9c0237130b34%2F9qkqk2l_processed.png&w=3840&q=75)
Transcribed Image Text:Revenues
Costs of Goods Sold
Gross Profit
Selling, General and Admin
Depreciation
EBIT
Income tax (35%)
Net Income
Capital Purchases
Changes to NWC
A. -$258,750.00
B. -$153,046.63
Year O
O C. $195,972.79
O D. $201,324.52
-600,000
+36,000
Year 1
800,000
Year 2 Year 3
800,000 800,000
-320,000 -320,000 -320,000
480,000 480,000 480,000
-105,000 -105,000 -105,000
-200,000 -200,000 -200,000
175,000 175,000 175,000
Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data
above. If the cost of capital is 8.5%, what is the net present value (NPV) of this project?
-61,250 -61,250 -61,250
113,750 113,750 113,750
-12,000 -12,000 -12,000
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