Copy of capital exercise solution

Copy of capital exercise solution - units revenue variable...

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Year 1 Year 2 Year 3 Year 4 Year 5 units 10,000 10,000 10,000 10,000 10,000 revenue 250,000 250,000 250,000 250,000 250,000 variable cost 150,000 150,000 150,000 150,000 150,000 fixed cost 10,000 10,000 10,000 10,000 10,000 depreciation exp 40,000 40,000 40,000 40,000 40,000 taxable income 50,000 50,000 50,000 50,000 50,000 taxes 15,000 15,000 15,000 15,000 15,000 net income 35,000 35,000 35,000 35,000 35,000 depr 40,000 40,000 40,000 40,000 40,000 operating cash flow 75,000 75,000 75,000 75,000 75,000 yr0 yr1 yr2 yr3 yr4 yr5 operating cash flow 75,000 75,000 75,000 75,000 75,000 net working capital (10,000) (5,000) (2,000) 2,000 5,000 10,000 fixed assets (210,000) 38,000 net cash flows (220,000) 70,000 73,000 77,000 80,000 123,000 cfo co1 co2 net present value 53,589.80 IRR 24.0% unit growth 0% price 25 variable cost per unit 15 fixed cost per year 10,000.00 initial inv 210,000.00 salvage value 10,000.00 useful life 5 depreciation exp/yr 40,000.00 tax rate 0.3 discount rate 15.00% sale proceeds
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Copy of capital exercise solution - units revenue variable...

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