chap10_ho1_world_solution

chap10_ho1_world_solution - $18,942 $20,916 $22,787 Net...

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Arthur L. Stone Jr. 01/13/2010 William Nelson Financial Forecast - First World Group 2008 2009 2010 2011 2012 Income Revenues Units Sold 100,000 110,000 121,000 133,100 146,410 Unit Price $3.00 $3.15 $3.31 $3.47 $3.65 Gross Revenue $300,000 $346,500 $400,208 $462,240 $533,887 Expenses Fixed Costs Production facility $50,000 $54,000 $58,320 $62,986 $68,024 Administration $25,000 $26,250 $27,563 $28,941 $30,388 Variable cost Unit mfg cost $1.50 $1.65 $1.82 $2.00 $2.20 Variable mfg cost $150,000 $181,500 $219,615 $265,734 $321,538 Analysis Financial Analysis Earnings before taxes $75,000 $84,750 $94,710 $104,579 $113,936 Taxes $15,000 $16,950
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Unformatted text preview: $18,942 $20,916 $22,787 Net income ($150,000) $60,000 $67,800 $75,768 $83,663 $91,149 Internal Rate of Return #NAME?-9.9% 16.3% 30.0% 37.7% Assumptions Initial Values Increase Additional Assumptions First year sales (units) 100,000 10.0% First year of forecast 2008 Selling price $3.00 5.0% Initial investment $150,000 Unit mfg cost $1.50 10.0% Tax rate 20% Production facility $50,000 8.0% Administration $25,000 5.0% A B C D E F G H 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...
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