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Copy of FCF_9th_edition_student_Chapter_11

Copy of FCF_9th_edition_student_Chapter_11 - $(1.00 then...

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Chapter 11 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may req the "Analysis ToolPak" or "Solver Add-In" be installed in Ex To install these, click on the Office button then "Excel Options," "Add-Ins" and select "Go." Check "Analyis ToolPak" and "Solver Add-In," then click "OK."
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quire that xcel.
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Chapter 11 Question 5 Input area: Initial cost $724,000 Project life 8 Units sales 90,000 Price/unit $43.00 Variable cost/unit $29.00 Fixed costs $780,000 Tax rate 35% Required return 15% b. New quantity for calculation 95,000 Projected sales change (500) c. New VC for calculation $30.00 Projected VC change $(1.00) Output area: a. Depreciation per year $90,500 Accounting breakeven 62,179 DOL 9.619 b. Base OCF $343,675 Base NPV $818,180.22 New quantity 95,000 OCF $389,175 NPV $1,022,353.35 $40.835 For a sales change of (500) the NPV would change $(20,417.31) c. New variable cost $30.00 OCF $285,175 $(58,500.00) If variable costs change by
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Unformatted text preview: $(1.00) then OCF would change by $58,500.00 ∆ NPV/ ∆ Q ∆ OCF/ ∆ VC Chapter 11 Question 17 Input area: Initial fixed assets $490,000 Life of project (yrs) 4 Price $32 Variable costs $19 Fixed costs $210,000 Quantity sold 110,000 Tax rate 34% Change in quantity 1,000 Output area: OCF at 110,000 units $846,850.00 OCF at 111,000 units $855,430.00 $8.58 ∆ OCF/ ∆ Q Chapter 11 Question 27 Input area: Quantity Initial investment Project life Fixed costs Variable costs Salvage value Selling price Net working capital Required return Tax rate b. Initial cost uncertainty Salvage value uncertainty Price uncertainty NWC uncertainty Output area: a. Depreciation #DIV/0! Aftertax salvage value $- OCF #DIV/0! NPV #DIV/0! b. Best case Worst case Initial cost $- $- Salvage value $- $- Price $- $- NWC $- $- Aftertax salvage value $- $- Best case OCF #DIV/0! Best case NPV #DIV/0! Worst case OCF #DIV/0! Worst case NPV #DIV/0!...
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