Final Paper - MINI CASE D) DATA Cost of plant and equipment...

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MINI CASE D) DATA Cost of plant and equipment 7,900,000 Shipping and installation 100,000 Tax rate 34% Required rate of return 15% Sales Price per unit (yrs 1-4) 300 Sales Price per unit (yr 5) 260 Variable cost per unit 180 Annual fixed cost 200,000 Depreciation life 5 Year 0 1 Units Sold 70,000 Sales price 300 Sales Revenue 21,000,000 Less: Variable Costs 12,600,000 Less: Fixed Costs 200,000 Equals: EBDIT 8,200,000 Less: Depreciation 1,600,000 Equals: EBIT 6,600,000 Taxes 2,244,000 Equals; Net change 4,356,000 EBIT 6,600,000 Less: Taxes 2,244,000 Plus: Depreciation 1,600,000 Operating Cash Flow 5,956,000 Revenue: 21,000,000 Initial Working Capital Requirement 100,000 Net Working Capital Needs: 2,100,000 Liquidation of Working Capital SECTION I: CALCULATE THE CHANGE IN EBIT, TAXES, AND DEPRECIATION CALCULATION OF OPERATING CASH FLOW IN SECTION II) SECTION II: CALCULATE OPERATING CASH FLOW CALCULATION OF FREE CASH FLOW IN SECTION IV) SECTION III: CALCULATE THE NET WORKING CAPITAL CALCULATION OF FREE CASH FLOW IN SECTION IV)
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This note was uploaded on 09/15/2011 for the course BUSINESS BUS 401 taught by Professor Dawnmckinley during the Fall '10 term at Ashford University.

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Final Paper - MINI CASE D) DATA Cost of plant and equipment...

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