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Excel Republic

The document provides financial information for a company over 5 years including equipment costs, R&D expenses, sales forecasts, price and cost details. It then calculates revenues, costs, profits, cash flows, net working capital and net cash flows on an annual basis. The net present value of the project is positive, indicating it should be accepted.

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Alfia safraoc
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97 views4 pages

Excel Republic

The document provides financial information for a company over 5 years including equipment costs, R&D expenses, sales forecasts, price and cost details. It then calculates revenues, costs, profits, cash flows, net working capital and net cash flows on an annual basis. The net present value of the project is positive, indicating it should be accepted.

Uploaded by

Alfia safraoc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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INPUT

Equipment $38,500,000.00
Salvage Value $5,400,000.00
R&D $750,000.00 Sunk cost
Marketing Study $200,000.00 Sunk cost

Year 1 Year 2 Year 3 Year 4


Sales (unit) 74000.00 95000 125000 105000
Depreciation rate 14.29% 24.49% 17.49% 12.49%
Sales of old PDA 80000 80000
Lost sales 15000 15000

price $480.00
VC $185.00
FC $5,300,000.00
Price of old PDA $310.00
Price reduction of old PDA $35.00
VC of old PDA $125.00
Tax rate 35%
NWC percentage 20%
required return 12%

OUTPUT
Sales Year 1 Year 2 Year 3 Year 4
New $35,520,000 $45,600,000 $60,000,000 $50,400,000
lost sales $4,650,000 $4,650,000
lost rev. $2,275,000 $1,575,000
Net sales $28,595,000 $39,375,000 $60,000,000 $50,400,000

VC $13,690,000 $17,575,000 $23,125,000 $19,425,000


New $1,875,000 $1,875,000
Lost sales $11,815,000 $15,700,000 $23,125,000 $19,425,000

Sales $28,595,000 $39,375,000 $60,000,000 $50,400,000


VC $11,815,000 $15,700,000 $23,125,000 $19,425,000
Fixed cost $5,300,000 $5,300,000 $5,300,000 $5,300,000
Dept $5,501,650 $9,428,650 $6,733,650 $4,808,650
EBT $5,978,350 $8,946,350 $24,841,350 $20,866,350
Tax $2,092,423 $3,131,223 $8,694,473 $7,303,223
NI $3,885,927 $5,815,127 $16,146,877 $13,563,127
(+)Dep $5,501,650 $9,428,650 $6,733,650 $4,808,650
OCF $9,387,577 $15,243,777 $22,880,527 $18,371,777

NWC
Beg $0 $ 5,719,000 $ 7,875,000 $ 12,000,000
End $5,719,000.00 $ 7,875,000.00 $ 12,000,000.00 $ 10,080,000.00
NWC CF -$5,719,000.00 -$2,156,000.00 -$4,125,000.00 $1,920,000.00

Net CF

Salvage
BV of Equipment
Taxes
Salvage CF Time
NET CF 0
1
2
3
4
5
Year 5
80000
8.93%

Year 5
$38,400,000

$38,400,000

$14,800,000

$14,800,000

$38,400,000
$14,800,000
$5,300,000
$3,438,050
$14,861,950
$5,201,683
$9,660,267
$3,438,050
$13,098,317

$ 10,080,000
$0.00
$10,080,000.00

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