case2_04

case2_04 - Assuming No Abandonment Prior to 2003 (In...

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Unformatted text preview: Assuming No Abandonment Prior to 2003 (In Thousands of dollars) End of Year 1995 1996 1997 1998 1999 2000 2001 2002 2003 Land-1,500 R&D Expense-240 80 80 80 Building-5,000 Equipment Cost-10,000 Working Capital-5,500-792-906-1,037-1,186-1,357-1,552 Total capital-1,740-20,500-712-826-957-1,186-1,357-1,552 Sales 22,000 25,168 28,792 32,938 37,681 43,107 49,315 Variable cost 13,200 15,101 17,275 19,763 22,609 25,864 29,589 Fixed cost 6,000 6,240 6,490 6,749 7,019 7,300 7,592 Depreciation 1,590 2,610 1,910 1,410 1,050 1,050 1,050 Operating Income 1,210 1,217 3,117 5,016 7,003 8,893 11,084 Tax 484 487 1,247 2,006 2,801 3,557 4,434 Net income 726 730 1,870 3,010 4,202 5,336 6,650 Depreciation 1,590 2,610 1,910 1,410 1,050 1,050 1,050 Op Cash flow 2,316 3,340 3,780 4,420 5,252 6,386 7,700 Cap Cash flow-1,740-20,500-712-826-957-1,186-1,357-1,552 Terminal value 53,204 Net cash flow-1,740-20,500 1,604 2,514 2,824 3,234 3,896 4,834 60,904 NPV 19,867 High demand, high growth 10% IRR 23.31% sales price growth 4% MIRR 18.46% Payback 7.06 PV-1,740-18,636 1,326 1,889 1,929 2,008 2,199 2,481 28,412 19,867 PV IRR-1,740-16,624 1,055 1,341 1,221 1,134 1,108 1,115 11,391 PV MIRR 2,842 4,049 4,134 4,304 4,714 5,317 60,904 86,265 Large Plant , High Demand, High Growth Cash Flow Statement Assuming No Abandonment Prior to 2003 (In Thousands of dollars) End of Year 1995 1996 1997 1998 1999 2000 Land-1,500 R&D Expense-240 80 80 80 Building-5,000 Equipment Cost-10,000 Working Capital-5,500-334-355-376-399 Total capital-1,740-20,500-254-275-296-399 Sales 22,000 23,338 24,757 26,262 Variable cost 13,200 14,003 14,854 15,757 Fixed cost 6,000 6,240 6,490 6,749 Depreciation 1,590 2,610 1,910 1,410 Operating Income 1,210 485 1,503 2,346 Tax 484 194 601 938 Net income 726 291 902 1,407 Depreciation 1,590 2,610 1,910 1,410 Op Cash flow 2,316 2,901 2,812 2,817 Cap Cash flow-1,740-20,500-254-275-296-399 Terminal value Net cash flow-1,740-20,500 2,062 2,626 2,516 2,418 NPV 399- IRR 9.59% high demand, low growth MIRR 8.53% Sales price growth Payback 7.06 PV-1,740-18,636 1,704 1,973 1,718 1,501 PV IRR-1,740-18,706 1,717...
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case2_04 - Assuming No Abandonment Prior to 2003 (In...

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