BUSI408GroupProject

BUSI408GroupProject - Attachment 1 Year 2011 2012 2013 2014...

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Attachment 1 Year 2011 2012 2013 2014 2015 2016 5,000,000.00 6,000,000.00 5,000,000.00 2,000,000.00 2,000,000.00 ContractA NPV Analysis Based on the given information, we assume there is no adjustments from the NOPAT to the CFC Inventory Cost ($4,500,000.00) ($5,400,000.00) ($4,500,000.00) ($1,800,000.00) ($1,800,000.00) Marketing Personnel Cost ($60,000.00) ($63,000.00) $0.00 $0.00 $0.00 Total Operating Cost ($4,560,000.00) ($5,463,000.00) ($4,500,000.00) ($1,800,000.00) ($1,800,000.00) Tax @ 35% (+) $1,596,000.00 $1,912,050.00 $1,575,000.00 $630,000.00 $630,000.00 NOPAT ($2,964,000.00) ($3,550,950.00) ($2,925,000.00) ($1,170,000.00) ($1,170,000.00) Total Incremental CFC (No Adjustments) ($2,964,000.00) ($3,550,950.00) ($2,925,000.00) ($1,170,000.00) ($1,170,000.00) PV @ 12% ($2,646,428.57) ($2,830,795.60) ($2,081,957.22) ($743,556.15) ($663,889.42) NPV@12% (formula) ($8,966,626.97) NPV@12% (calc) ($8,966,626.97) In-house NPV Analysis We assume that the market value of the old equipment is the capital expense at the beginning (like a opportunity cost) Total Material Cost ($750,000.00) ($936,000.00) ($811,200.00) ($337,459.20) ($350,957.57) Total Space (Rent) ($240,000.00) ($240,000.00) ($240,000.00) ($240,000.00) ($240,000.00) Total Labor Cost ($1,150,000.00) ($1,391,250.00)
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BUSI408GroupProject - Attachment 1 Year 2011 2012 2013 2014...

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