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

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