What are the cash flows in year one

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Reference no: EM131088063

Revenues = 50,000 cans, price of $4 per can • Sales last for 3 years • Variable costs = $2.50 per can • Fixed costs = $12,000 per year, yrs 1 - 3 • Working capital = 10% of revenues • CapEx of $90,000 in year 0 • Depreciated straight-line over 3 years • Tax rate = 34% • WACC = 10%

What are the cash flows in year 1?

What is the NPV of this project?

What if sales are 10% higher than expected?

Reference no: EM131088063

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