Copy of MGF301 Assignment 4 - answers-2

Copy of MGF301 Assignment 4 - answers-2 - Question 1 A 1 2...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 Page 1 Year: 0 1 2 3 4 A. Fixed assets Investments in fixed assets 2,500,000 CF, invest. in fixed assets -2,500,000 0 0 0 0 B. Working capital Working capital 200,000 210,000 230,000 240,000 0 200,000 10,000 20,000 10,000 -240,000 CF, invest. in wk capital -200,000 -10,000 -20,000 -10,000 240,000 C. Operations Revenues 2,000,000 2,100,000 2,300,000 2,400,000 Variable Costs 1,000,000 1,050,000 1,150,000 1,200,000 Fixed Costs 200,000 200,000 200,000 200,000 Depreciation 625,000 625,000 625,000 625,000 Pretax profit 175,000 225,000 325,000 375,000 Tax 61,250 78,750 113,750 131,250 Profit after tax 113,750 146,250 211,250 243,750 Cash flow from operations 738,750 771,250 836,250 868,750 D. Project valuation Total project cash flow -2,700,000 728,750 751,250 826,250 1,108,750 Net present value -99,222 E. Other inputs Discount rate 0.11 Inven. as % of expenses 0.1 Tax rate 0.35 Change in working capital A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 2(a) Year: 0 1 2 3 4 A. Fixed assets Investments in fixed assets 2,500,000 CF, invest. in fixed assets
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2012 for the course MGF 301 taught by Professor Mohr during the Spring '08 term at SUNY Buffalo.

Page1 / 5

Copy of MGF301 Assignment 4 - answers-2 - Question 1 A 1 2...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online