00 capex 24000 increase in inventory 2500 increase in

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Unformatted text preview: in inventory $-25.00 Increase in accounts payable $5.00 ∆NOWC $-20.00 II. Project Operating Cash Flows Unit sales (thousands) Price/unit Total revenues Operating costs excluding depreciation Depreciation Total cost EBIT (or operating income) Taxes on operating income EBIT(1-T) = After-tax operating income Add back depreciation EBIT(1-T) + DEP III. Project Termination Cash Flows Salvage value (taxed as ordinary income) Tax on salvage value After-tax salvage value ∆NOWC = Recovery of NOWC ProjectFCF=EBIT(1-T)+DEP-CAPEX-∆NOWC $-260.00 IV. Results NPV = $14.97 IRR = 12.59% MIRR = 11.55% Payback = 3.17 1 <----<----<----<----<----<----- 2 3 4 Straight from book Straight from book SUM Straight from book Straight from book ∆CA - ∆CL 100 $2.100 $210.00 $126.00 $79.20 $205.20 $4.80 $1.92 $2.88 79.20 $82.08 100 100 100 $2.205 $2.315 $2.431 $220.50 $231.53 $243.10 $132.30 $138.92 $145.86 $108.00 36.0 16.8 $240.30 $174.92 $162.66 $-19.80 $56.61 $80.44 $-7.92 $22.64 $32....
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This homework help was uploaded on 02/16/2014 for the course BUS 330 taught by Professor Ned during the Winter '13 term at American University in Bulgaria.

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