Do we have everything we need on sales and costs? you ask. It must be time to compute the net present value (NPV) and internal rate of return (IRR) of the Apix expansion project.

Do we have everything we need on sales and costs? you ask. It must be time to compute the net present value (NPV) and internal rate of return (IRR) of the Apix expansion project.
We have the data from James and Luke regarding projected sales and costs respectively for the food packaging project says Mary. It is feasible to project that we will receive a tax break from this implementation. I have information from our audit firm that indicates that future depreciation methods for taxes will be straight-line; however the corporate rates will be reduced to 35% as we assumed in our weighted average cost of capital (WACC) calculation.
That sounds good you say.
Right says Mary. You can use a WACC of 10%for the computation of the NPV and comparison for IRR.
Ive got the information I need from Luke and James you say. Does this look right to you? Heres what they gave me you say as you hand a sheet of paper to Mary.
Lets look at this now while were together she says.
The information you hand to Mary shows the following:
You continue your conversation.
It looks good says Mary. Use this information from Luke and James to compute the cash flows for the project.
No problem you say.
Then compute NPV and IRR of the project using theExcel spreadsheetI sent earlier today says Mary. Use the IRR financial function for the computation of IRR.
Okay you say. Ill submit my Excel file showing the computation of cash flows NPV and IRR by the end of week so you can look at it over the weekend.
Thanks says Mary.
Complete the above worksheet for this assignment.