Capital Funds Employed 181 163 146 130 115 69 60 114 15 Cash 16

Capital funds employed 181 163 146 130 115 69 60 114

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Capital Funds Employed 181 163 146 130 115 102 90 79 69 60 114 15. Cash - - - - - - - - - - 16. Receivables 124 134 142 151 160 160 169 169 178 178 157 17. Inventories 207 222 237 251 266 266 281 281 296 296 260 18. Prepaid and Deferred Expenses - - - - - - - - - - 19. Less: Current Liabilities (2) (82) (108) (138) (185) (184) (195) (195) (207) (207) (150) 20. Total Working Funds (15 Thru 19) 329 274 271 264 241 242 255 255 267 267 267 21. Total New Funds Employed (14+20) 510 437 417 394 356 344 345 334 336 327 380 Profit and Loss 22. Unit Volume (in thousands) 1,100 1,200 1,300 1,400 1,500 1,500 1,600 1,600 1,700 1,700 1,460 23. Gross Sales 2,200 2,400 2,600 2,800 3,000 3,000 3,200 3,200 3,400 3,400 2,920 24. Deductions 88 96 104 112 120 120 128 128 136 136 117 25. Net Sales 2,112 2,304 2,496 2,688 2,880 2,880 3,072 3,072 3,264 3,264 2,803 26. Cost of Goods Sold 1,100 1,200 1,300 1,400 1,500 1,500 1,600 1,600 1,700 1,700 1,460 27. Gross Profit 1,012 1,104 1,196 1,288 1,380 1,380 1,472 1,472 1,564 1,564 1,343 28. Advertising Expense 1,100 1,050 1,000 900 700 700 730 730 750 750 841 29. Selling Expense - - - - - - - - - - - 30. Gen. And Admin. Cost - - - - - - - - - - - 31. Research Expense - - - - - - - - - - - 32. Start-Up Costs 15 - - - - - - - - - 2 33. Other (Explain) Test Marketing 360 - - - - - - - - - 36 34. Adjustments (Explain) Erosion 180 200 210 220 230 230 240 240 250 250 225 Exhibit 6: Financial Evaluation Form of General Foods Corporation for Super Project (in thousands of $s) 9. Total Project Cost * * Same as Project Request
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35. Profit Before Taxes (643) (146) (14) 168 450 450 502 502 564 564 240 36. Taxes (334) (76) (7) 87 234 234 261 261 293 293 125 36A. Add: Investment Credit (1) (1) (1) (1) (1) (1) (1) (1) - - (1) 37. Net Profit (308) (69) (6) 82 217 217 242 242 271 271 116 38. Cumulative Net Profit (308) (377) (382) (301) (84) 133 375 617 888 1,159 39. New Funds to Repay (21 Less 38) 818 814 799 695 440 211 (30) (283) (552) (832) Calculation Net Present Value Super Project - Projections (in thousands of $s) 1. Test Marketing Expenses not included 2. Incremental Overhead Costs included according to Exhibit Appendix A 3. Sales Erosion Jell-O not included 4. Includes Cost of Jell-O Facilities Used according to Exhibit Appendix A 5. Project is liquidated after year 10 Year 0 1 2 3 4 5 6 7 8 9 10 Net Sales 2,112 2,304 2,496 2,688 2,880 2,880 3,072 3,072 3,264 3,264 1,100 1,200 1,300 1,400 1,500 1,500 1,600 1,600 1,700 1,700 Gross Profit 1,012 1,104 1,196 1,288 1,380 1,380 1,472 1,472 1,564 1,564 Selling, General and Administrative Expenses 1,100 1,050 1,000 900 700 700 730 730 750 750 Increased Overhead Costs - - - - 90 90 90 90 90 90 Total S,G&A Expenses 1,100 1,050 1,000 900 790 790 820 820 840 840 46 44 41 38 35 32 30 27 24 21 Start-Up Costs 15 - - - - - - - - - Net Operating Profit (EBIT) (149) 10 155 350 555 558 622 625 700 703 Taxes on EBIT (@ 52%) (78) 5 81 182 289 290 324 325 364 366 After-Tax EBIT (NOPAT) (72) 5 74 168 266 268 299 300 336 337 Net Working Capital 329 274 271 264 241 242 255 255 267 267 New Plant Revisions (Gross) 80 - - - - - - - - - - 4 4 4 4 4 3 3 3 3 3 Net Plant Revisions 80 76 72 69 65 61 58 55 52 48 45 New Equipment 120 - - - - - - - - - - 15 14 13 12 11 10 9 8 7 6 Net Equipment 120 105 91 78 66 55 45 36 28 21 15 Use of Jell-O Building 133 - - - - - - - - - - 6 6 6 6 6 6 6 5 5 5 Net Use Jell-O Building 133 127 120 114 108 102 97 91 86 80 75 Use of Jell-O Agglomerator 320 - - - - - - - - - - 40 37 35 32 29 27 24 21 19 16 Assumptions : Cost of Goods Sold b Depreciation on Jell-O Equipment a Depreciation on Plant Revisions a Depreciation on New Equipment a Depreciation on Use Jell-O Building a Depreciation on Jell-O Agglomerator a
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Net Use of Jell-O Agglomerator 320 280 243 208 176 147 120 96 75 56 40 Total Net Invested Capital (Funds Employed) 653 917 800 740 679 606 562 533 495 473 443 Calculation Net Present Value Super Project: Free Cash Flows and NPV (in thousands of $s) 1. Test Market Expenses not included 2. Incremental Overhead Costs included according to Exhibit Appendix A 3. Sales Erosion Jell-O not included 4. Includes Cost of Jell-O Facilities Used according to Exhibit Appendix A 5. Project is liquidated after year 10 Year 0 1 2 3 4 5 6 7 8 9 10 Net Sales 2,112 2,304 2,496 2,688 2,880 2,880 3,072 3,072 3,264 3,264 1,100 1,200 1,300 1,400 1,500 1,500 1,600 1,600 1,700 1,700
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