Paper's_Paper_Solution

Paper's_Paper_Solution - Paper's Paper Calculations Item...

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Paper's Paper Part A See additional tabs at bottom for remaining parts. Calculations Year Item 0 1 2 3 4 Machine BS $200,000 Machine Rich $70,000 Machine Green $120,000 $(25,000) Machine Rented $40,000 $40,000 Labour BSNV $120,000 $120,000 $120,000 $120,000 Labour Rich $25,000 $25,000 $25,000 $25,000 CM $1.00 Demand B 60,000 69,000 79,350 91,253 Demand S 80,000 80,000 80,000 80,000 Demand NVR 100,000 120,000 144,000 187,200 Total 240,000 269,000 303,350 358,453 Gross Profit $240,000 $269,000 $303,350 $358,453 Working Capital $24,000 $26,900 $30,335 $35,845 $42,830 Change in WC $24,000 $2,900 $3,435 $5,510 $6,985 Rent $80,000 $81,600 $83,232 $84,897 $86,595 Subtotals $494,000 $(10,500) $(37,333) $(52,943) $(79,873) Cost of Capital 8% Discounted $494,000 $(9,722) $(32,007) $(42,028) $(58,709) Total $(33,841) Yes - expand!! (Check) $(33,841)
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5 6 $(30,000) $40,000 $120,000 $120,000 $25,000 $25,000 104,940 120,681 80,000 80,000 243,360 316,368 428,300 517,049 $428,300 $517,049 $51,705 $8,875 $(51,705) $88,326 $(146,099) $(453,754) $(99,433) $(285,942)
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Surrey Expansion Part B Calculations Year Item 0 1 2 3 4 Machine $100,000 Labour $40,000 $40,000 $40,000 $40,000 CM $1.00 Demand S 80,000 80,000 80,000 80,000
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This note was uploaded on 02/19/2011 for the course COMM 298 taught by Professor Freedman during the Spring '09 term at UBC.

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Paper's_Paper_Solution - Paper's Paper Calculations Item...

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