Calculate the revenues per year-variable cost per year

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A 5 years’ project is defined as it follows: Revenues are $645,000 the first year and will increase 3% per year for the next 4 years. Fixed cost are $52,000 and they will increase 5% the first 2 years and will remain constant for the following years. Variable cost is assumed to be 8% of the Revenues. The initial investment is $800,000 Fixed assets are priced at $250,000 and they are depreciated linearly for 5 years with a residual value of zero. Taxes are 35%

Calculate: Revenues per year -- Variable Cost per year -- Fixed Cost per year -- EBIT per year.

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Reference no: EM131915110

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