Saturn_Template_Spring_2009(1)

Saturn_Template_Spring_2009(1) - SATURN Proforma income and...

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SATURN Proforma income and cashflow statements Assumptions: 9-year plant life, 15% Plant life (years) 9 Inflation: 0% WACC 17.8% Tax rate 40% Working capital/sales 35% Option 1a: Expand at Spring Hill: Full Scale 0 1 2 3 4 5 6 7 8 9 10 11 SOURCE OF INFORMATION YEAR 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 REVENUE SIDE Exhibit 2 Unit Sales 0 0 0 178000 178000 178000 178000 178000 178000 178000 178000 178000 Exhibit 3 and 4B Price per unit $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 Units x price per unit Total revenue $2,225,000,000 $2,225,000,000 $2,225,000,000 $2,225,000,000 $2,225,000,000 $2,225,000,000 $2,225,000,000 $2,225,000,000 $2,225,000,000 EXPENSE SIDE Exhibit 2 Production cost/car $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 $7,200 Units x costs per unit Total production costs -$1,281,600,000 $1,281,600,000 $1,281,600,000 $1,281,600,000 $1,281,600,000 $1,281,600,000 $1,281,600,000 $1,281,600,000 $1,281,600,000 Industry average (10% of sales) SG&A -$222,500,000 $222,500,000 $222,500,000 $222,500,000 $222,500,000 $222,500,000 $222,500,000 $222,500,000 $222,500,000 9 year, straight line Depreciation -$100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 Total expenses -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 -$1,604,100,000 Total revenue minus total expenses EBIT $620,900,000 $620,900,000 $620,900,000 $620,900,000 $620,900,000 $620,900,000 $620,900,000 $620,900,000 $620,900,000 Taxes at 40% Taxes $248,360,000 $248,360,000 $248,360,000 $248,360,000 $248,360,000 $248,360,000 $248,360,000 $248,360,000 $248,360,000 EBIT minus taxes Earnings $372,540,000 $372,540,000 $372,540,000 $372,540,000 $372,540,000 $372,540,000 $372,540,000 $372,540,000 $372,540,000 Industry average (35% sales) Start-up costs $778,750,000 Exhibit 2 Capital expenditure Depreciation $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 $100,000,000 Earnings - startup - capex + depreciation Operating cash flow -$306,210,000 Recover start-up costs Terminal value Operating CF + TV PV of $1 in year 1 0.85 0.72 0.61 0.52 0.44 0.37 0.32 0.27 0.23 0.19 0.16 PV(Operating CF + TV) NPV OVERALL
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SATURN Proforma income and cashflow statements Assumptions: 9-year plant life, 17.8 Plant life (years) 9
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