Copy of Cash Flows-Grayson Products Sequel-Solutions

Copy of Cash Flows-Grayson Products Sequel-Solutions -...

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Information for Grayson Products Capitalized Amt: $8,000,000 Straight Line Depreciation  $7,900,000  New Machine Price 1 20%  $1,600,000  2 20%  $1,600,000   $100,000  Initial NWC 3 20%  $1,600,000   $300  Unit Sales Price (Yr 1-4) 4 20%  $1,600,000   $260  Unit Sales Price (Yr 5) 5 20%  $1,600,000   $180  Variable Costs 6 0%  $-     $200,000  Fixed Costs Total:  $8,000,000  NWC: 10% Tax Rate 34% Cost of Capital 15% Operating Cash Flows 0 1 2 3 4 5 Units  70,000   120,000   140,000   80,000   60,000  Price  $300.00   $300.00   $300.00   $300.00   $260.00  Total Sales  $21,000,000.00   $36,000,000.00   $42,000,000.00   $24,000,000.00   $15,600,000.00  Variable Costs  $12,600,000   $21,600,000   $25,200,000   $14,400,000   $10,800,000  FC  $200,000   $200,000   $200,000   $200,000   $200,000  EBDIT  $8,200,000   $14,200,000   $16,600,000   $9,400,000 
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Unformatted text preview: $4,600,000 Depreciation $1,600,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 EBIT $6,600,000 $12,600,000 $15,000,000 $7,800,000 $3,000,000 Taxes $2,244,000 $4,284,000 $5,100,000 $2,652,000 $1,020,000 NOPAT $4,356,000 $8,316,000 $9,900,000 $5,148,000 $1,980,000 Depreciation $1,600,000 $1,600,000 $1,600,000 $1,600,000 $1,600,000 Shipping & Installation ($100,000) Capital Expenditures ($7,900,000) Total NWC ($100,000) (2,100,000) (3,600,000) (4,200,000) (2,400,000) (1,560,000) NWC (2,000,000) (1,500,000) (600,000) 1,800,000 840,000 Sale of Old 1,560,000 OCF: $(8,100,000) $3,956,000 $8,416,000 $10,900,000 $8,548,000 $5,980,000 NPV $16,731,095.66 IRR 77%...
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This note was uploaded on 11/16/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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