HW 3 Solution - FINANCIAL ANALYSIS OF PRODUCT XYZ SALES...

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FINANCIAL ANALYSIS OF PRODUCT XYZ SALES GROWTH RATE 16.00% SELLING PRICE $80 INITIAL INVESTMENT $10,000 YEAR 0 1 2 3 4 5 SALES 100 116 135 156 181 REVENUES $8,000 $9,280 $10,765 $12,487 $14,485 COSTS DIR LABOR $3,000 $3,480 $4,037 $4,683 $5,432 DIR MATL $2,500 $2,900 $3,364 $3,902 $4,527 IND COSTS $1,000 $1,100 $1,200 $1,300 $1,400 TOTAL COSTS $6,500 $7,480 $8,601 $9,885 $11,359 DEPRECIATION $2,000 $2,000 $2,000 $2,000 $2,000 TAX INCOME ($500) ($200) $164 $602 $1,127 TAXES ($250) ($100) $82 $301 $563 PROFIT ($250) ($100) $82 $301 $563 NET CASH FLOW ($10,000) $1,750 $1,900 $2,082 $2,301 $2,563 COST OF MONEY 0.10 PRESENT VALUE -$2,111 IRR 2%
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FINANCIAL ANALYSIS OF PRODUCT XYZ SALES GROWTH RATE 31.94% SELLING PRICE $80 INITIAL INVESTMENT $10,000 YEAR 0 1 2 3 4 5 SALES 100 132 174 230 303 REVENUES $8,000 $10,555 $13,927 $18,375 $24,244 COSTS DIR LABOR $3,000 $3,958 $5,222 $6,890 $9,091 DIR MATL $2,500 $3,299 $4,352 $5,742 $7,576 IND COSTS $1,000 $1,100 $1,200 $1,300 $1,400 TOTAL COSTS $6,500 $8,357
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HW 3 Solution - FINANCIAL ANALYSIS OF PRODUCT XYZ SALES...

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