homework 13 template - P12-18 INPUTS Tax Rate Required Rate...

Info icon This preview shows page 1. Sign up to view the full content.

P12-18 INPUTS Tax Rate Required Rate of Return Year Cost of New P&E Shipping and Installation Initial Working Capital Percentage of Working Capital Fixed Cost of Growth Rate Opportunity Cost Overhead Gain on sale of equip Annual Depreciation #DIV/0! Year 0 1 2 3 4 5 Units Sold $70,000 $100,000 $140,000 $70,000 $60,000 Sale Price $240 $240 $240 $240 $190 Variable Cost/Unit $140 $140 $140 $140 $140 Units Sold - Existing Product $9,000 $9,000 $9,000 $9,000 $9,000 Sales Price - Existing Product $180 $180 $180 $180 $180 Variable Costs/Unit - Existing Product $100 $100 $100 $100 $100 Annual Fixed Cost $300,000 $300,000 $300,000 $300,000 $300,000 CASH FLOW Step 1 Calculate Operating Cash Flows Sales Revenue 16,800,000 24,000,000 33,600,000 16,800,000 11,400,000 Less: Variable Costs (9,800,000) (14,000,000) (19,600,000) (9,800,000) (8,400,000) Less variable costs existing 1,620,000 1,620,000 1,620,000 1,620,000 1,620,000 Sales Revenue Existing (900,000) (900,000) (900,000) (900,000) (900,000) Less: Fixed Costs (300,000) (300,000) (300,000) (300,000) (300,000) Less: Opportunity Cost - -
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '14
  • DanBothe
  • Finance, Operating cash flow, Generally Accepted Accounting Principles, DIV/0

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern