304 _11 NPV - Name Hannah(Hong Nguyen Section Finan 304 001...

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Section: Finan 304 - 001 MicronTechnology IN PROJECT NPV (in thousands of $) Year 0 Year 1 Year 2 Year 3 Key Assumptions Unit Sales 2000 4000 5600 Inflation Rate 2.00% 2.50% 3.00% Real Cost of Capital 11.00% 11.20% 11.40% Tax Rate 35.00% 35.00% 35.00% Discounting Discount Rate = Cost of Capital 13.22% 13.98% 14.74% Cumulative Discount Factor 0.0% 13.22% 29.05% 48.07% Price or Cost / Unit Sales Revenue / Unit $9.70 $9.94 $10.24 Variable Cost / Unit $10.50 $10.76 $11.09 Cash Fixed Costs $7,560.00 $7,749.00 $7,981.47 Cash Flow Forecasts Sales Revenue $19,400.00 $39,770.00 $57,348.34 Variable Costs $21,000.00 $43,050.00 $62,078.10 Gross Margin $(1,600.00) $(3,280.00) $(4,729.76) Cash Fixed Costs $7,560.00 $7,749.00 $7,981.47 Depreciation $1,421.43 $1,421.43 $1,421.43 Total Fixed Costs $8,981.43 $9,170.43 $9,402.90 Operating Profit $(10,581.43) $(12,450.43) $(14,132.66) Taxes $(3,703.50) $(4,357.65) $(4,946.43) Net Profit $(6,877.93) $(8,092.78) $(9,186.23) Add Back Depreciation $1,421.43 $1,421.43 $1,421.43 Operating Cash Flow $(5,456.50) $(6,671.35) $(7,764.80) Investment in Plant & Equip $(11,350.00) Cash Flows $(11,350.00) $(5,456.50) $(6,671.35) $(7,764.80)
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