Pappyu2019s Potato Question.xlsx - Pappy's Potato Question...

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Pappy's Potato Question 970000 sales 895000 3rd percent 16% deprication 242500 1st percent variable cost (24%) 214800 Fixed cost 228000 income before taxes 209700 2nd percent Taxes 22% 46134 net income 163566 deprication 242500 406066 payback period 2.39 NPV $166,246.02 IRR 24.360% 940000 sales 880000 3rd percent 13% deprication 235000 variable cost (18%) 158400 Fixed cost 222000 income before taxes 264600 Taxes 24% 63504 net income 201096 deprication 235000 436096 payback period 2.16 NPV $ 357,155.05 IRR 30.30%
930000 sales 875000 3rd percent 16% deprication 232500 variable cost (24%) 210000 Fixed cost 220000 income before taxes 212500 Taxes 23% 48875 net income 163625 deprication 232500 396125 payback period 2.35 NPV $ 178,429.31 IRR 25.33%
22.5% 28.5% 21.8% -17.5% -4.5% -16.8% 10.5% 30.5% 9.8% 21.0% -16.0% 19.6% 5.5% 34.5% 4.8% 8.4% 14.6% 7.84%
Evaluating a project Q Cost of machine Deprication Year CFAT 0 -970000 BASE CASH FLOW 1 406066 OCF= 2 406066 OCF= A1 ANSWER 3 406066 4 406066 Base NPV NPV= NPV= A2 ANSWER Sales unit= Year CFAT OCF= 0 -940000 OCF= 1 436096 2 436096 3 436096 NPV= 4 436096 NPV= NPV SENSITIVITY NPV SENSITIVITY ANSWER B NPV CHANGE NPV CHANGE ANSWER C Vairable cost one more= OCF=
OCF= SENSITIVITY OF OCF= SENSITIVITY OF OCF= ANSWER D OCF INCREASE OCF INCREASE ANSWER E 10-9 Questions Variance, average and 1 2 Year CFAT 3 0 -930000 4 1 396125 5 2 396125 AVERAGE RETURN 3 396125 4 396125
1800000 Note 300000 PVIFA @9%,6 years (1/r)*(1-(1/(1+r^n) (1/.09)*(1-(1/(1+.09)^6)) 4.485919 ((38.19-23.4)*(87300)-827000)*(1-0.24)+(0.24)*300000

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