AMG Case Study

AMG Case Study - Hardware Cost Software Cost Units WACC Tax...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Hardware Cost Software Cost Units WACC Tax Rate MACRS year 1 year 2 year 3 year 4 year 5 year 6 ­750 ­250 7542 TOTAL ­5656500 ­1885500 ­7542000 PRESENT WORTH 24 MONTH CASH FLOW Month 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 0.15 Note: NPV calculated with WACC 0.34 0.2 0.32 0.19 0.12 0.12 0.06 Software 24 MONTHS Rate Cost of Capital Salvage 0.04 0.11 0 36 MONTHS 0.03 0.12 0 Hardware Rate Cost of Capital Salvage Disposal Cost Sell 20% N/A N/A 0.04 0.07 150 0.03 0.08 0 ­50 50 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 RESENT WORTH 4 MONTH CASH FLOW 15% WACC Hardware Software Salvage Depreciation NPV ­5656500 ­1885500 0 0 ($7,460,210.27) 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 ­1131301 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 1131300 ­1810081 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 ­1086049 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 36 MONTH CASH FLOW Month 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 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 1131300 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1131300 0 0 0 0 0 0 0 ­651629.8 0 0 0 0 0 0 0 0 0 0 0 ­651629.8 0 0 0 0 0 0 0 0 0 0 0 ­325815.4 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 6 MONTH CASH FLOW Hardware Software Salvage ­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 Depreciation NPV 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 ...
View Full Document

This note was uploaded on 03/28/2011 for the course ENGR 110 taught by Professor . during the Winter '10 term at UCLA.

Ask a homework question - tutors are online