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AMG Case Study

AMG Case Study - HardwareCost SoftwareCost Units WACC...

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TOTAL PRESENT Hardware Cost -750 -5656500 Software Cost -250 -1885500 24 MONTH Units 7542 -7542000 Month 0 WACC 0.15 Note: NPV calculated with WACC 1 Tax Rate 0.34 2 3 MACRS year 1 0.2 4 year 2 0.32 5 year 3 0.19 6 year 4 0.12 7 year 5 0.12 8 year 6 0.06 9 10 11 24 MONTHS 36 MONTHS 12 Software 13 Rate 0.04 0.03 14 Cost of Capital 0.11 0.12 15 Salvage 0 0 16 17 Hardware 18 Rate 0.04 0.03 19 Cost of Capital 0.07 0.08 20 Salvage 150 0 21 Disposal Cost N/A -50 22 Sell 20% N/A 50 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
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41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72
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T WORTH H CASH FLOW 15% WACC 36 MONTH Hardware Software Salvage Depreciation NPV Month -5656500 -1885500 0 0 ($7,460,210.27) 0 0 0 0 0 1 0 0 0 0 2 0 0 0 0 3 0 0 0 0 4 0 0 0 0 5 0 0 0 0 6 0 0 0 0 7 0 0 0 0 8 0 0 0 0 9 0 0 0 0 10 0 0 0 0 11 0 0 0 -1131301 12 0 0 0 0 13 0 0 0 0 14 0 0 0 0 15 0 0 0 0 16 0 0 0 0 17 0 0 0 0 18 0 0 0 0 19 0 0 0 0 20 0 0 0 0 21 0 0 0 0 22 0 0 0 0 23 0 0 1131300 -1810081 24 0 0 0 0 25 0 0 0 0 26 0 0 0 0 27 0 0 0 0 28 0 0 0 0 29 0 0 0 0 30 0 0 0 0 31 0 0 0 0 32 0 0 0 0 33 0 0 0 0 34 0 0 0 0 35 0 0 0 -1086049 36 0 0 0 0 37 0 0 0 0 38 0 0 0 0 39 0 0 0 0 40
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0 0 0 0 41 0 0 0 0 42 0 0 0 0 43 0 0 0 0 44 0 0 0 0 45 0 0 0 0 46 0 0 0 0 47 0 0 1131300 -651629.8 48 0 0 0 0 49 0 0 0 0 50 0 0 0 0 51 0 0 0 0 52 0 0 0 0 53 0 0 0 0 54 0 0 0 0 55 0 0 0 0 56 0 0 0 0 57 0 0 0 0 58 0 0 0 0 59 0 0 0 -651629.8 60 0 0 0 0 61 0 0 0 0 62 0 0 0 0 63 0 0 0 0 64 0 0 0 0 65 0 0 0 0 66 0 0 0 0 67 0 0 0 0 68 0 0 0 0 69 0 0 0 0 70 0 0 0 0 71 0 0 1131300 -325815.4 72
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H CASH FLOW Hardware Software Salvage Depreciation NPV -5656500 -1885500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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