Accounting Project - Jeremy Pflug

Accounting Project - Jeremy Pflug - $35,763 $35,763 $35,763...

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0 1 2 3 4 5 Number of cans produced 1100000 1100000 1100000 1100000 1100000 Cost of equipment -$200,000 Savings if not purchased from outside $495,000 $495,000 $495,000 $495,000 $495,000 Cost of raw material $275,000 $275,000 $275,000 $275,000 $275,000 Other variable costs $55,000 $55,000 $55,000 $55,000 $55,000 Labor cost $30,820 $30,820 $30,820 $30,820 $30,820 Depreciation $32,000 $32,000 $32,000 $32,000 $32,000 Savings before tax $102,180 $102,180 $102,180 $102,180 $102,180 Less: taxes @ 35% $35,763 $35,763
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Unformatted text preview: $35,763 $35,763 $35,763 Net savings after tax $66,417 $66,417 $66,417 $66,417 $66,417 Add: depreciation $32,000 $32,000 $32,000 $32,000 $32,000 Add: disposal value $40,000 Free cash flow-$200,000 $98,417 $98,417 $98,417 $98,417 $138,417 Cumulative cash flow $98,417 $196,834 $295,251 $393,668 $532,085 Payback period (in years) 2.03 Annual rate of return 55.35% Net present value $177,468.33 IRR 42.20%...
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