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- Download: https://solutionzip.com/downloads/apix/
- Apix is considering coffee packaging as an additional diversification to its product line. Here’s information regarding the coffee packaging project:
- Assume a WACC of 10%.
- • Initial investment outlay of $40 million, consisting of $35 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year
- • Project and equipment life: 5 years
- • Sales: $27 million per year for five years
- • Assume gross margin of 50% (exclusive of depreciation)
- • Depreciation: Straight-line for tax purposes
- • Selling, general, and administrative expenses: 10% of sales
- • Tax rate: 35%
- Download: https://solutionzip.com/downloads/apix/
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