Calculations.xlsx - Corporate Finance Initial Cost Life Units Price VC salvage NWC Fixed Cost Required Return Tax Rate \$ \$ \$ \$ \$ \$ Time 0 \$ \$ \$ \$ \$ \$ \$

# Calculations.xlsx - Corporate Finance Initial Cost Life...

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Corporate Finance Initial Cost \$ 5,200,000 Life 5 Units 35000 Price \$ 280 VC \$ 185 salvage \$ 500,000 NWC \$ 410,000 Fixed Cost \$ 985,000 Required Return 13% Tax Rate 38% Time 0 Year 1 Year 2 Year 3 Revenue \$ - \$ 9,800,000 \$ 9,800,000 \$ 9,800,000 Variable Costs \$ - \$ 6,475,000 \$ 6,475,000 \$ 6,475,000 Fixed Costs \$ 985,000 \$ - \$ - \$ - Depreciation 0 \$ 940,000 \$ 940,000 \$ 940,000 EBIT \$ (985,000) \$ 2,385,000 \$ 2,385,000 \$ 2,385,000 Tax \$ - \$ 906,300 \$ 906,300 \$ 906,300 Net Income \$ (985,000) \$ 1,478,700 \$ 1,478,700 \$ 1,478,700 OCF \$ (985,000) \$ 2,418,700 \$ 2,418,700 \$ 2,418,700 NWC \$ (410,000) Capital Investment \$ 5,200,000 \$ - \$ - \$ - Cash Flows \$ (5,610,000) \$ 2,418,700 \$ 2,418,700 \$ 2,418,700 NPV \$ 3,391,038.79 (Using the formula of NPV and rate as 13%) Breakeven Analysis

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