Homework02 - 4,383.00 4,383.00 4,563.00 4,861.00 5,078.80...

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New Product Development CVEN 333-501 2010C Base Case Question 1 Homework 2 Dollars in thousands Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Capital Cost Estimate 76000 34200 41800 Expense Item Plant Labor Payroll 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 800.00 Payroll Burden (31%) 248.00 248.00 248.00 248.00 248.00 248.00 248.00 248.00 248.00 Management 405.00 405.00 405.00 405.00 405.00 405.00 405.00 405.00 405.00 Utilities 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 Consumables 76.00 76.00 76.00 76.00 76.00 76.00 76.00 76.00 76.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 Insurance 77.00 77.00 77.00 77.00 77.00 77.00 77.00 77.00 77.00 Maintenance 463.00 463.00 463.00 463.00 463.00 463.00 463.00 463.00 231.50 Parts and Supplies 344.00 344.00 344.00 344.00 344.00 344.00 344.00 344.00 344.00 Capital Repairs 0.00 0.00 0.00 100.00 100.00 100.00 100.00 100.00 0.00 Feedstock 1,800.00 1,800.00 1,980.00 2,178.00 2,395.80 2,635.38 2,898.92 3,188.81 3,507.69 Total Expenses
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Unformatted text preview: 4,383.00 4,383.00 4,563.00 4,861.00 5,078.80 5,318.38 5,581.92 5,871.81 5,859.19 2 Annual Gross Revenues Sales Price per Unit 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 Units Sold 1.1 900.00 900.00 990.00 1,089.00 1,197.90 1,317.69 1,449.46 1,594.40 1,753.85 Cost of Sales per Unit 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Net Revenues 20,250.00 20,250.00 22,275.00 24,502.50 26,952.75 29,648.03 32,612.83 35,874.11 39,461.52 Salvage Value Net Cash Flows-34200-41800 15,867.00 15,867.00 17,712.00 19,641.50 21,873.95 24,329.65 27,030.91 30,002.30 33,602.33 Year 1 2 3 4 5 6 7 8 9 10 Discount Rate 0.22 1 0.82 0.67 0.55 0.45 0.37 0.3 0.25 0.2 0.17 0.14 Discounted Value-34200-34262.3 10660.44 8738.07 7995.18 7267.34 6633.89 6048.07 5507.85 5010.9 4600.14 Net PW-6000 20%...
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This note was uploaded on 09/11/2010 for the course MEEN 333 taught by Professor Reinschmidt during the Fall '10 term at Texas A&M.

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