# 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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