homework 13 template

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

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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 - -
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• Fall '14
• DanBothe
• Finance, Operating cash flow, Generally Accepted Accounting Principles, DIV/0

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