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
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
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
