Lawn Mover case GP10.xlsx - Year 0 Year 1 Year 2...

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Year Year Year 0 1 2 Sales (units) 30,000 34,000 Price 1,000 1,000 Sales Revenue 30,000,000 34,000,000 Variable Cost 12,000,000 13,600,000 Contribution Margin 18,000,000 20,400,000 Fixed Costs 1,500,000 1,500,000 Rent ($10,000 per month) 120,000 120,000 EBITDA 16,380,000 18,780,000 MACRS Rates 0.1429 0.2449 Depreciation 2,858,000 4,898,000 EBIT 13,522,000 13,882,000 Taxes 4,597,480 4,719,880 Net Income 8,924,520 9,162,120 Operating Cashflow (OCF) 11,782,520 14,060,120 Net Working Capital (5% of Revenues) 900,000 1,500,000 1,700,000 Increase in NWC -900,000 -600,000 -200,000 NWC recovery Capital Investment -20,000,000 - - After -Tax Salvage Total Cash Flow -20,900,000 11,182,520 13,860,120 NPV $46,162,736.36 IRR 60.81% Variable cost Per Unit $ 400 Fixed cost $ 1,500,000 Rent per month $ 10,000 Per Year $ 120,000 Equipment cost $ 20,000,000 Tax Rate 34% Net Working Capital 5% OF REVENUES Increase in AP $ 600,000 Inceease in AR $ 1,000,000 Inventory $ 500,000 Change in NWC $ 900,000 Interest expense $ 400,000 Cost of capital 14% Sale of equipments & tools $ 4,000,000 Accumulated depreciation 20,000,000 After Tax Salvage Value $ 2,640,000 SENSITIVITY CASE 1 View with scenerio manager
Year Year Year Year Year 3 4 5 6 7 38,800 38,000 36,000 36,000 35,500 1,000 950 950 950 950 38,800,000 36,100,000 34,200,000 34,200,000 33,725,000 15,520,000 15,200,000 14,400,000 14,400,000 14,200,000 23,280,000 20,900,000 19,800,000 19,800,000 19,525,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 120,000 120,000 120,000 120,000 120,000 21,660,000 19,280,000 18,180,000 18,180,000 17,905,000 0.1749 0.1249 0.0893 0.0893 0.0893 3,498,000 2,498,000 1,786,000 1,786,000 1,786,000 18,162,000 16,782,000 16,394,000 16,394,000 16,119,000 6,175,080 5,705,880 5,573,960 5,573,960 5,480,460 11,986,920 11,076,120 10,820,040 10,820,040 10,638,540 15,484,920 13,574,120 12,606,040 12,606,040 12,424,540 1,940,000 1,805,000 1,710,000 1,710,000 1,686,250 -240,000 135,000 95,000 - 23,750 - - - - - 15,244,920 13,709,120 12,701,040 12,606,040 12,448,290
Year Year Year 8 9 10 35,000 34,500 34,000 900 900 900 31,500,000 31,050,000 30,600,000 14,000,000 13,800,000 13,600,000 17,500,000 17,250,000

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