NWC Example

# NWC Example - \$50,000 \$75,000 \$50,000 \$25,000 1 OCF \$59,800...

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Capital Spending Year 0 Cost of New Machine \$200,000 OCF Years 1 to 5 Annual Depreciation 5yr S-L \$40,000 Base Revenues \$480,000 Other Inputs Variable Costs \$360,000 Tax Rate 34% Fixed Costs \$50,000 Discount Rate 12% Depreciation \$40,000 Taxable Income (EBIT) \$30,000 Sales and Cost Estimates Tax Exp \$10,200 Units 6,000 NI \$19,800 Sale Price Per unit \$80 OCF \$59,800 Variable Costs Per Unit \$60 Fixed Costs \$50,000 Change in Net W 0 1 Estimated NWC

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Unformatted text preview: \$50,000 \$75,000 \$50,000 \$25,000 1 OCF \$59,800 NCS \$200,000 \$50,000 \$25,000 CF-\$250,000 \$34,800 NPV-\$14,632 ∆ NWC Casf Flows = OC ∆ NWC Working Capital 2 3 4 5 \$100,000 \$75,000 \$50,000 \$0 \$25,000-\$25,000-\$25,000-\$50,000 2 3 4 5 \$59,800 \$59,800 \$59,800 \$59,800 \$25,000-\$25,000-\$25,000-\$50,000 \$34,800 \$84,800 \$84,800 \$109,800 CF - NCS - ∆ NWC...
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## This note was uploaded on 10/08/2009 for the course BCOR 2200 taught by Professor Tomnelson during the Spring '08 term at Colorado.

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NWC Example - \$50,000 \$75,000 \$50,000 \$25,000 1 OCF \$59,800...

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