MGF301 Spring 2010 Assignment 4 - answers summer 2010

MGF301 Spring 2010 Assignment 4 - answers summer 2010 -...

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Unformatted text preview: Question 1 Page 1 Year: 1 2 3 4 A. Fixed assets Investments in fixed assets 800,000 CF, invest. in fixed assets-800,000 B. Working capital Working capital 180,000 195,000 210,000 225,000 180,000 15,000 15,000 15,000-225,000 CF, invest. in wk capital-180,000-15,000-15,000-15,000 225,000 C. Operations Revenues 1,200,000 1,300,000 1,400,000 1,500,000 Variable Costs 480,000 520,000 560,000 600,000 Depreciation 200,000 200,000 200,000 200,000 Pretax profit 520,000 580,000 640,000 700,000 Tax 182,000 203,000 224,000 245,000 Profit after tax 338,000 377,000 416,000 455,000 Cash flow from operations 538,000 577,000 616,000 655,000 D. Project valuation Total project cash flow-980,000 523,000 562,000 601,000 880,000 Net present value 879,204 E. Other inputs Discount rate 0.13 Inven. as % of expenses 0.15 Tax rate 0.35 Change in working capital A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Question 2(a) Year: 1 A. Fixed assets Investments in fixed assets 2,000,000...
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MGF301 Spring 2010 Assignment 4 - answers summer 2010 -...

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