caitlin finance - Equipment needed: Depreciation: Salvage...

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Unformatted text preview: Equipment needed: Depreciation: Salvage value: Rophemerization chamber 350,000,000 10 year MACRS 75,000,000 Industrial sphereinator 170,000,000 5 year MACRS n/a 8 year project year 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 Unit price 1,550 1,473 1,399 1,329 1,262 1,199 1,139 1,082 Unit sales 80,000 160,000 240,000 250,000 300,000 380,000 450,000 450,000 VC 675 662 648 635 623 610 598 586 FC 800,000 816,000 832,320 848,966 865,946 883,265 900,930 918,949 Revenue 124,000,000 235,680,000 335,760,000 332,250,000 378,600,000 455,620,000 512,550,000 486,900,000 (Costs) (54,800,000) (106,736,000) (156,352,320) (159,598,966) (187,765,946) (232,683,265) (270,000,930) (264,618,949) Operation Profit 69,200,000 128,944,000 179,407,680 172,651,034 190,834,054 222,936,735 242,549,070 222,281,051 (Depreciation)RC (35,000,000) (63,000,000) (50,400,000) (40,320,000) (32,270,000) (25,795,000) (22,925,000) (22,925,000) (22,960,000) (22,925,000) (11,480,000) (Depreciation)IS (24,293,000) (41,633,000) (29,733,000) (21,233,000) (15,181,000) (15,164,000) (15,181,000) (7,582,000) (Depreciation)NEW (2,200,000) (3,520,000) (2,112,000) (1,267,200) (1,267,200) (633,600) 0 EBT 9,907,000 24,311,000 99,274,680 111,098,034 141,183,054 178,457,735 202,331,070 190,506,851 (Tax) (3,467,450) (8,508,850) (34,746,138) (38,884,312) (49,414,069) (62,460,207) (70,815,875) (66,677,398) Net Income 6,439,550 15,802,150 64,528,542 72,213,722 91,768,985 115,997,528 131,515,196 123,829,453 Depreciation 59,293,000 104,633,000 80,133,000 61,553,000 49,651,000 44,479,000 40,218,000 31,774,200 OCF 65,732,550 120,435,150 144,661,542 133,766,722 141,419,985 160,476,528 171,733,196 155,603,653 CAP (520,000,000) (11,000,000) 71,869,345 NWC (5,000,000) (1,000,000) 6,000,000 Total Cash Flow (525,000,000) 65,732,550 120,435,150 144,661,542 121,766,722 141,419,985 160,476,528 171,733,196 233,472,998 Depreciation Rates 10 year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.56% 6.55% 3.28% 7 year 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% 5 year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% Book values rophemerization chamber 315,000,000 252,000,000 201,600,000 161,280,000 129,010,000 103,215,000 80,290,000 57,365,000 industrial sphereinator 145,707,000 104,074,000 74,341,000 53,108,000 37,927,000 22,763,000 7,582,000 5 year MACRS equipment 9,428,100 5,908,100 3,796,100 2,528,900 1,261,700 NWC (initial): Tax rate: 5,000,000 35% Starting at end of year 4: Salvage value: 5 year MACRS equipment 11,000,000 (installed middle of year 5) 4,000,000 NWC 1,000,000 NPV $5,337,224.38 Required Rate 0.18 IRR 18.28% PI $1.01 MIRR 15.44% Equipment needed: Depreciation: Salvage value: Rophemerization chamber 350,000,000 10 year MACRS 75,000,000 Industrial sphereinator 170,000,000 5 year MACRS n/a 8 year project year 0 year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8 Unit price 1,938 1,841 1,749 1,662 1,579 1,500 1,425 1,354 Unit sales 80,000 160,000 240,000 250,000 300,000 380,000 450,000 450,000...
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This note was uploaded on 01/25/2011 for the course MGT 3062 taught by Professor Marchman during the Spring '10 term at Georgia Institute of Technology.

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caitlin finance - Equipment needed: Depreciation: Salvage...

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