Dixon Case

Dixon Case - Model Key Inputed Assumptions 1980 Revenue...

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Unformatted text preview: Model Key Inputed Assumptions 1980 Revenue Sales-tons 32000 Average price/ton 415 Sales -$000 0.18 13280 Manufacturing Costs Variable- Power 0.49 6304- Graphite 0.05 0.13 645- Salt & Other 0.09 0.13 1285 Total Variable 8234 Fixed- Labor 0.12 1180- Maintenance 0.1 256- Other 1154 Total Fixed 2590 Total Manufacturing costs 10824 Other Charges- Seling 0.13 112- R & D 0.08 451- Depreciation 0.05 1060- Total 1623 Operating Profit 833 CapEx 10,600 485 Net Working Capital 8.00% 1400 1196 Tax Rate 47.52% Terminal Value 1979e 1980 Assets 1622 1328 651 598 10600 10025 Total 12873 11951 Liabilities- A/P 873 730 Net Assets 12000 11221- A/R- Inventory- Net PPE WACC 16.55% FCFF (12,000) 1,216 NPV $(2,210.30) Exhibit 2 DCF for Collinsville P 1979 1980 1981 1982- Depreciation 1060 1110 1160 EBIT 833 2218 3035 CapEx 10600 485 525 560 Net Working Capita 8.00% 1400 1196 1512 1778 Tax Rate 47.52% Terminal Value WACC 16.55% FCFF (12000) 1,216 1,433 1,927 NPV $(2,210) Project cash should note through 198 PPE(year t) need to mak assumptions CAPX is 60 Linked Calculated 1981 1982 1983 1984 1985 1986 1987 1988 35000 38000 38000 38000 38000 38000 38000 38000 480 520 562 606 654.48 706.84 763.39 824.46 16800 19760 21356 23028 24870.24 26859.86 29008.65 31329.34 7735 9386 10526 11780 13193.6 14776.83 16550.05 18536.06 791 875 940 992 1119.93 1209.53 1306.29 1410.79 1621 1753 1836 1956 2230.62 2409.07 2601.8 2809.94 10147 12014 13302 14728 16544.16 18395.43 20458.14 22756.79 1297 1427 1580 1738 1943.47 2173.22 2430.14 2717.44 277 299 322 354 387.88 425 465.67 510.24 1148 1179 1113 1153 1152.75 1152.5 1152.25 1152 2722 2905 3015 3245 3484.1 3750.72 4048.07 4379.68 12869 14919 16317 17973 20028.25 22146.16 24506.21 27136.47 125 138 152 168 189 212.63 239.2 269.1 478 508 543 591 636.86 686.29 739.55 796.94 1110...
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This note was uploaded on 03/23/2011 for the course BUS M 401 taught by Professor Toddmitton during the Fall '10 term at BYU.

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Dixon Case - Model Key Inputed Assumptions 1980 Revenue...

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