HW #2 key

HW #2 key - NI-2970-102960 163620 OCF 496980 563640 385920...

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0 1 2 3 4 5 6 7 Revenue $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 Costs $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 $400,000 Gross Profit $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 MACRS Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% Depreciation $(70,000) $(112,000) $(67,200) $(40,320) $(40,320) $(20,160) $- EBIT $130,000 $88,000 $132,800 $159,680 $159,680 $179,840 $200,000 Taxes $(45,500) $(30,800) $(46,480) $(55,888) $(55,888) $(62,944) $(70,000) NI $84,500 $57,200 $86,320 $103,792 $103,792 $116,896 $130,000 OCF $154,500 $169,200 $153,520 $144,112 $144,112 $137,056 $130,000 Fixed Assets $(350,000) $68,250 Change in NWC $75,000 $- $- $- $- $- $- $(75,000) Free Cash Flows $(425,000) $154,500 $169,200 $153,520 $144,112 $144,112 $137,056 $273,250 NPV $323,504
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0 1 2 3 Incremental Sales = 1,500,000*.25 375000 375000 375000 120000 120000 120000 Incremental Gross Profit 495000 495000 495000 3 Year MACRS 0.33 0.44 0.15 Depreciation 499950 666600 222300 EBIT -4950 -171600 272700 Taxes -1980 -68640 109080
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Unformatted text preview: NI-2970-102960 163620 OCF 496980 563640 385920 Fixed Assets-1500000 Change in NWC Free Cash Flows-1500000 496980 563640 385920 NPV $53,282.51 Incremental Cost Savings = 1,200,000*.10 4 5 375000 375000 120000 120000 495000 495000 0.07 111150 383850 495000 153540 198000 230310 297000 341460 297000 341460 297000 1 2 Incremental Sales = 1,500,000*.25 375000 375000 120000 120000 Incremental Gross Profit 495000 495000 3 Year MACRS 0.33 0.44 Depreciation 499950 666600 EBIT-4950-171600 Taxes-1980-68640 NI-2970-102960 OCF 496980 563640 Fixed Assets-1500000 Change in NWC Free Cash Flows-1500000 496980 563640 NPV $126,696.05 Incremental Cost Savings = 1,200,000*.10 3 4 5 375000 375000 375000 120000 120000 120000 495000 495000 495000 0.15 0.07 222300 111150 272700 383850 495000 109080 153540 198000 163620 230310 297000 385920 341460 297000 385920 341460 297000...
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HW #2 key - NI-2970-102960 163620 OCF 496980 563640 385920...

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