Case 2, Team 6.pptx - Sneaker 2013 vs Persistence Case 2 Mark Anderson Jake McDonough Cody Rossman Chase Wietfeld What Do we Include in our Cash Flow

Case 2, Team 6.pptx - Sneaker 2013 vs Persistence Case 2...

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Sneaker 2013 vs Persistence Case 2 Mark Anderson, Jake McDonough, Cody Rossman, Chase Wietfeld
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What Do we Include in our Cash Flow Analysis? Factory Costs Research and Development X Cannibalization of Own Sales Interest Costs X Changes in Current Assets/Liabilities Taxes Cost of Goods Sold Advertising and Promotion Depreciation X* *Depreciation is not included for tax purposes, but is then added back after tax.
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Sneaker 2013 Financial Outlook Initial Investment: $179,923,355 Operating Cash flows: Year 1: $15,743,913 Year 2: $37,373,913 Year 3: $34,506,226 Year 4: $53,323,904 Year 5: $38,003,925 Year 6: $15,644,855 Net Present Value: $15,971,323
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Persistence Financial Outlook Initial Investment: $23,000,000 Actual Operating Cash flows: Year 1: -$15,410,000 Year 2: $22,223,600 Year 3: $29,125,052 Comparative Cash flows Year 4: -$7,683,781 Year 5: $33,322,192 Year 6: $44,417,581 Net Present Value: $41,325,601
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Quantitative Analysis Sneaker 2013 NPV: $15,971,323 Persistence NPV: $41,325,601 Clearly from a quantitative standpoint, both
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