Exam 2 Find NPV - Inputs Units Price Cost or Unit Cost...

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Inputs 0 1 2 3 4 Units 1250 1250 1250 1250 Price 200 206 212 219 Cost or Unit Cost  240,000  100 103 106 109 Price/Cost Infl 3% 3% 3% MACRS 33% 45% 15% 7% WC/NextSales 12% 12% 12% 12% 12% Initial inv WC  30,000  Salvage Value  25,000  Cost of Capital 10% 10% 10% 10% 10% Financials Revenues  250,000   257,500   265,225   273,182  COGS  125,000   128,750   132,613   136,591  OPEX  -     -     -     -    Depr  79,200   108,000   36,000   16,800  EBIT/EBT  45,800   20,750   96,613   119,791  Taxes 40%  18,320   8,300   38,645   47,916  NI=NOPAT  27,480   12,450   57,968   71,875  Add Depr  79,200   108,000   36,000   16,800  EQ Op CF  106,680   120,450   93,968   88,675  Minus IncrWC  900   927   955   (32,782) EQ FCF  105,780   119,523   93,013   121,456  Terminal CF  15,000  Total CF  (270,000)  105,780   119,523   93,013   136,456  PV Factor 1.0000 0.9091 0.8264 0.7513 0.6830 PV  (270,000)  96,164   98,779   69,882   93,202  NPV  88,026  NOWC  30,000.00   30,900.00   31,827.00   32,781.81   -    Increase in NOWC  30,000.00   900   927   955   (32,782)
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Tot Depr Book Value  240,000   -     Calculated   Calculated  Recovery of WC (Part of Terminla CF) adds to OpCF Salvage Value -(Salvage Value - Book Value)*TaxRate
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This note was uploaded on 09/08/2010 for the course BUS 173A at San Jose State University .

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Exam 2 Find NPV - Inputs Units Price Cost or Unit Cost...

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