But i dont know how to calculate those answers, so i need the steps

But i dont know how to calculate those answers, so i need the steps.

There are answers already in

Ex. 1a, 1b, 2a, 3a, 4a, 4b, 5a

But I dont know how to calculate those answers, so I need the steps and explanations please.

Thanks.

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Exercise 1 Laptop plc. is planning on setting up a laptop repair centre. They estimate that: The required investment will be £0.3m and the investment’s life is expected to be 5 years. The investment is to be depreciated using the straight line depreciation method and none of the costs are expected to be recovered at the end of the 5 years. Total revenues from repairs are expected to be £200,000 in year one (one year from now), growing at 2.5% per annum. Staffing costs are £90,000 per year. Administrative, advertising and general expenses associated with the centre are expected to be £20,000 per year. All costs are expected to increase at 2.5% per annum. The discount rate for ventures of similar risk is 12%. Laptop plc. faces a corporate tax rate of 35%. Calculate the NPV of this project and determine whether it should be accepted or rejected. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Investment -300000 Revenues 200000 205000 210125 215378.1 220762.6 Total Costs 110000 112750 115568.8 118458 121419.4 Depreciation 60000 60000 60000 60000 60000 Total Income 30000 32250 34556.25 36920.16 39343.16 Taxes 10500 11287.5 12094.69 12922.05 13770.11 AT Income 19500 20962.5 22461.56 23998.1 25573.05 CF (add depr) 79500 80962.5 82461.56 83998.1 85573.05 PV -300000 70982.14 64542.81 58694.51 53382.31 48556.45 R=0.12 NPV -3841.78 Suppose you are told that Laptop plc. is totally equity financed. The company has a beta equal to 1.2. Appropriate estimates for the risk free rate and the market risk premium are 2% and 4%, respectively. Calculate the NPV of this project and determine whether it should be accepted or rejected. RCAPM 0.068 -300000 74438.2 70980.88 67692.07 64563.11 61585.83 NPV 39260.1 Suppose you are told that Laptop plc’s core business is not laptop repairs but production of laptop components. The beta of companies in the laptop repair business is generally around 2.5. Would you…

But i dont know how to calculate those answers, so i need the steps

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