vv-10 - ..#1 InitialOutlay Used New Shovel Transportation...

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This tab analyzes one shovel. Go through this solution first. The 2nd tab below goes through the  # 1 Initial Outlay Used New Shovel 14,570,000 30,330,000 Transportation 45,000 20,000 Assembly 5,000 3,000    Initial Cash Flow 14,620,000 30,353,000 #2 Periodic Cash Flows Important Used New Used Revenue 256,000,000 368,000,000 Tons Daily 400 Variable Costs 243,200,000 349,600,000 Days / year 320 Fixed Costs 295,000 180,000 Repair / year 225,000 Depreciation 1,462,000 2,023,533 Overhead / year 70,000 EBT 11,043,000 16,196,467 Revenue / ton 2,000 Taxes 4,417,200 6,478,587 Cost / ton 1,900 NI 6,625,800 9,717,880 Tax Rate 40% Add back depr 1,462,000 2,023,533 Discount Rate 15% Periodic Cash Flow 8,087,800 11,741,413 #3 Taxes 4,417,200 6,478,587 #4 Terminal Cash Flows Used New Cash from sale 4,000 321,000 Book value 0 10,117,667 Capital Gain 4,000 -9,796,667 Tax on sale 1,600 -3,918,667    Terminal Cash Flow 2,400 4,239,667 Forecast Period
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vv-10 - ..#1 InitialOutlay Used New Shovel Transportation...

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