Conch+Republic - Year I. Investment Outlay 1. Develop a...

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Year 0 1 2 I. Investment Outlay 1. Develop a prototype -750 2. Marketing study -200,000 3. Equipment -15,000,000 4. Total net investment -15,200,750 II. Operating Cashflows over the Project's Life 5. Sales of new PDA ($250 per unit) 17,500,000 20,000,000 6. Variable costs ($86 per unit) 6,020,000 6,880,000 7. Fixed Costs ($3,000,000 per year) 3,000,000 3,000,000 8. Depreciation on new equipment 2,143,500 3,673,500 9. Earning before tax 6,336,500 6,446,500 10. Taxes (35%) 2,217,775 2,256,275 11. Projected net operating income 4,118,725 4,190,225 12. Add back noncash expenses (depreciation expense) 2,143,500 3,673,500 13. Cash flow from operations 6,262,225 7,863,725 14. Net working capital 3,500,000 4,000,000 15. Investment in NWC - -500,000 16. Net salvage value 17. Total projected cash flow 6,262,225 7,363,725 Total projected cash flow is the sum of Row 13, 15, and 16. Year Est. Sales of Sales 1 70,000 2 80,000 3 100,000 4 85,000 5 75,000 MACRS depreciation rates are as follows: - Year 1
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Conch+Republic - Year I. Investment Outlay 1. Develop a...

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