financecasestudy

financecasestudy - ModelInputs UnitSales InitialNWC...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Model Inputs Start-Up 1 2 3 Unit Sales  65,000   82,000   108,000  Initial NWC Variable (Unit) Cost  215  Total Fixed Cost  4,300,000  Unit Price  500  Equipment cost  32,500,000  MACRS 14.29% 24.49% 17.49% Salvage Value Additional NWC 20% of sales Tax Rate 35% Required Return 12% Mordel Outputs NPV  22,555,612  Sesitivity: IRR 44% >12% Accept project Payback 2.88 years Project Cash Flow 1 2 3 Operating Cash Flow  10,871,738   15,181,238   19,201,488  Change in NWC  (6,500,000)  (1,700,000)  (2,600,000) Capital Spending  (32,500,000)  -     -    Project Cash Flow  (28,128,263)  13,481,238   16,601,488  Cumulative Cash Flow  (28,128,263)  (14,647,025)  1,954,463  Pro Forma Income Statement 1 2 3 Sales  32,500,000   41,000,000   54,000,000  LESS:  Variable Costs  13,975,000   17,630,000   23,220,000  Gross Profit  18,525,000   23,370,000   30,780,000  LESS:  Fixed Cost  4,300,000   4,300,000   4,300,000  LESS:  Depreciation  4,644,250   7,959,250   5,684,250  EBIT/EBT  9,580,750   11,110,750   20,795,750  LESS:  Taxes
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/05/2011 for the course FIN 350 taught by Professor Debruinne during the Winter '11 term at Grand Valley State.

Page1 / 15

financecasestudy - ModelInputs UnitSales InitialNWC...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online