Given Data Market capitalization on 28 March 2024 Feasibility study New Biotech Project useful lifetime (years) Building construction cost Machines and installation costs 139,138,000.00 1,000,000.00 7.00 210,000,000.00 490,000,000.00 Building tax allowable depreciable life (years) 30.00 Machines tax allowable depreciable life (years) 7.00 Loan 400,000,000.00 Term loan (years) 7.00 Interest rate (per annum) 6.00% Land lease 500,000.00 Sales in 2025 Annual growth rate of sales Annual variable cost (percentage of sales) Annual fixed cost Maintenance expense Annual growth rate of maintenance expense Marketing expense Annual growth rate of marketing expense 300,000,000.00 4.00% 20.00% 80,000,000.00 1,000,000.00 5.00% 500,000.00 1.00% 200,000.00 3.00% Training cost Annual growth rate of training costs CEO Salary in 2024 700,000.00 Buildings resale price in 2031 50,000,000.00 Machines resale price in 2031 10,000,000.00 Inventory in 2024 10,000,000.00 Inventory in 2023 7,000,000.00 Change in accounts payable in 2024 4,000,000.00 Accounts payable in 2024 10,000,000.00 Accounts Receivable in 2023 8,000,000.00 Accounts Receivable in 2024 11,000,000.00 Tax rate Discount rate 30.00% 12.00% Dividends in 2027 Dividend growth rate (per annum) 0.40 3.00%
Given Data Market capitalization on 28 March 2024 Feasibility study New Biotech Project useful lifetime (years) Building construction cost Machines and installation costs 139,138,000.00 1,000,000.00 7.00 210,000,000.00 490,000,000.00 Building tax allowable depreciable life (years) 30.00 Machines tax allowable depreciable life (years) 7.00 Loan 400,000,000.00 Term loan (years) 7.00 Interest rate (per annum) 6.00% Land lease 500,000.00 Sales in 2025 Annual growth rate of sales Annual variable cost (percentage of sales) Annual fixed cost Maintenance expense Annual growth rate of maintenance expense Marketing expense Annual growth rate of marketing expense 300,000,000.00 4.00% 20.00% 80,000,000.00 1,000,000.00 5.00% 500,000.00 1.00% 200,000.00 3.00% Training cost Annual growth rate of training costs CEO Salary in 2024 700,000.00 Buildings resale price in 2031 50,000,000.00 Machines resale price in 2031 10,000,000.00 Inventory in 2024 10,000,000.00 Inventory in 2023 7,000,000.00 Change in accounts payable in 2024 4,000,000.00 Accounts payable in 2024 10,000,000.00 Accounts Receivable in 2023 8,000,000.00 Accounts Receivable in 2024 11,000,000.00 Tax rate Discount rate 30.00% 12.00% Dividends in 2027 Dividend growth rate (per annum) 0.40 3.00%
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 7E
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