case work hw 2.xlsx - Advanced Seal Per unit revenue and costs Revenue $22 COGS $12 Gross profit $10 Cannibalization rat 70 Premium Product Basic

case work hw 2.xlsx - Advanced Seal Per unit revenue and...

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Advanced Seal Premium Product Basic Product Per unit revenue and costs Revenue $22 $18 $13 COGS $12 $7 $6 Gross profit $10 $11 $7 Cannibalization rat 70% 55% 15% Volume 2000 2000 2000 Year 0 Year 1 Year 2 Year 3 Revenue Adv Seal 44000 44000 44000 Premium 36000 16200 16200 16200 Basic 26000 22100 22100 22100 Premium+Basic 62000 38300 38300 38300 Incremental revenue 62000 82300 82300 82300 Gross profit Adv Seal 20000 20000 20000 Premium 22000 9900 9900 9900 Basic 14000 11900 11900 11900 Premium+Basic 36000 21800 21800 21800 Incremental gross profit 36000 41800 41800 41800 Incremental advertising exp 4,000 6,000 6,000 6,000 SG&A expenses 1,500 1,000 1,000 1,000 MACRS % table 20.00% 32.00% 19.20% Depreciation 800.00 1,280.00 768.00 Incremental EBIT 30,500 34,000 33,520 34,032 Taxe Rate 40% Taxes 12,200 13,600 13,408 13,612.80 NOPAT 18,300 20,400 20,112 20,419 NWC RATIO 9 9 9 Net working capital 6888.89 9144.44 9144.44 9144.44 Net PP&E 4000 3,200.00 2,720.00 3,232.00 Free Cash Flow NOPAT 18,300 20,400 20,112 20,419 + Depreciation 800.00 1,280.00 768.00 - Capital expenditures 4000 0 0 0
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- Investment in NWC 2255.56 0 0 0 Free cash flow (1,500.00) 21,200.00 21,392.00 21,187.20 Discounted value NPV 70,429.71 IRR
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2000 Year 4 44000 16200 22100 38300 82300 20000 9900 11900 21800 41800 6,000 1,000 11.52% 460.80 34,339 13,735.68 20,604 9 9144.44 3,539.20 20,604 460.80 0
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-2255.56 23,319.88
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Advanced Seal Premium Product Basic Product Per unit revenue and costs Revenue $21 $18 $13 COGS $12 $7 $6 Gross profit $9 $11 $7 Cannibalization rat 45% 60% 15% 2000 2000 2000 Volume 3250 3250 3250 Year 0 Year 1 Year 2
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  • glambosky

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