Easy COla - Ecsy Cola Capital outlay 20,000,000.00 Discount...

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Unformatted text preview: Ecsy Cola Capital outlay 20,000,000.00 Discount rate 15% Tax rate 30% Fixed costs per year 3,000,000.00 Variable costs per liter 24,000,000.00 Revenues per liter 70,000,000.00 Steady-state sales (liters, millions) 50,000,000.00 Quantity 200,000,000.00 Base Case Scenario Years - 1.00 initial Investment (20,000,000.00) Tax Dep 5,000,000.00 Tax Shield 1,500,000.00 Liter Sold - 12,500,000.00 Revenues - 4,375,000.00 Fix Costs (3,000,000.00) 3,000,000.00 Variable Costs - 1,500,000.00 Operating Cash Flow - (125,000.00) - TAX - (37,500.00) Operating Cash Flow After Tax - (87,500.00) + Depreciation tax shield - 1,500,000.00 Net Cash Flow (23,000,000.00) 1,412,500.00 $1,228,260.87 NPV $12,655,655.95 Worst Case Scenario Years - 1.00 initial Investment (20,000,000.00) Tax Dep 5,000,000.00 Tax Shield 1,500,000.00 Liter Sold - 5,000,000.00 Revenues - 1,750,000.00 Fix Costs (3,000,000.00) 3,000,000.00 Variable Costs - 600,000.00 Operating Cash Flow - (1,850,000.00) - TAX...
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This note was uploaded on 10/20/2010 for the course FIN 34041 taught by Professor Chaz during the Spring '10 term at Ecole Hôtelière de Lausanne.

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Easy COla - Ecsy Cola Capital outlay 20,000,000.00 Discount...

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