1 2 3 4 Sales units 20000 24000 28800 28000 Adjusted Sales Price 700 700 650

1 2 3 4 sales units 20000 24000 28800 28000 adjusted

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0 1 2 3 4 Sales (units) 20,000 24,000 28,800 28,000 Adjusted Sales Price 700 ### 700 650 Revenues 14,000,000 16,800,000 20,160,000 18,200,000 Variable Cost 8,000,000 9,600,000 11,520,000 11,200,000 Fixed Costs 2,000,000 ### 2,000,000 2,000,000 Rent ($10,000 per month) 120,000 ### 120,000 120,000 EBIT 3,880,000 5,080,000 6,520,000 4,880,000 MACRS Rates 0 0 0 0 Depreciation 4,287,000 7,347,000 5,247,000 3,747,000 Taxes (138,380) (770,780) 432,820 385,220 OCF 8,305,380 13,197,780 11,334,180 8,241,780 Net Working Capital (5% of Revenues) 800,000 700,000 840,000 1,008,000 910,000 Investment in WC (800,000) 100,000 (140,000) (168,000) 98,000 Capital Investment (30,000,000) Total Cash Flow (30,800,000) 8,405,380 13,057,780 11,166,180 8,339,780 IRR NPV WACC Change in NPV 24.95% $ 33,915,622 2% $ 28,858,735 4% $ 24,412,685 6% $ 22,389,000 7% -8.29% $ 20,484,546 8% -8.51% $ 18,690,244 9% -8.76% $ 16,997,838 10% -9.06% $ 15,399,803 11% -9.40% $ 13,889,278 12% -9.81% $ 12,459,995 13% -10.29% $ 11,106,224 14% -10.86% $ 9,822,718 15% -11.56% $ 8,604,666 16% -12.40% $ 7,447,654 17% -13.45% $ 6,347,627 18% -14.77% $ 5,300,854 19% -16.49% $ 4,303,899 20% -18.81% $ 3,353,595 21% -22.08% $ 2,447,018 22% -27.03% $ 1,581,467 23% -35.37% $ 1,581,467 23% 0.00% $ 754,445 24% -52.29% $ (36,361) 25% -104.82% $ (793,093) 26% 2081.18% $ (1,517,740) 27% 91.37% $ (2,212,148) 28% 45.75% $ (2,878,032) 29% 30.10% $ (3,516,988) 30% 22.20% $ (4,130,502) 31% $ (4,719,960) 32% $ (5,286,653) 33%
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$ (5,831,787) 34% $ (6,356,490) 35% $ (6,861,816) 36% $ (7,348,751) 37% $ (7,818,219) 38% $ (8,271,086) 39% $ (8,708,166) 40% $ (9,130,221) 41% $ (9,537,969) 42% $ (9,932,084) 43% $(10,313,200) 44% $(10,681,915) 45% $(11,038,791) 46% $(11,384,360) 47% $(11,719,123) 48% $(12,043,552) 49%
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5 6 7 8 9 10 26,000 26,000 25,500 25,000 24,500 24,000 650 650 650 600 600 600 16,900,000 16,900,000 16,575,000 15,000,000 14,700,000 14,400,000 10,400,000 10,400,000 10,200,000 10,000,000 9,800,000 9,600,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 120,000 120,000 120,000 120,000 120,000 120,000 4,380,000 4,380,000 4,255,000 2,880,000 2,780,000 2,680,000 0 0 0 0 2,679,000 2,679,000 2,679,000 1,335,000 - - 578,340 578,340 535,840 525,300 945,200 911,200 6,480,660 6,480,660 6,398,160 3,689,700 1,834,800 1,768,800 845,000 845,000 828,750 750,000 735,000 720,000 65,000 - 16,250 78,750 15,000 720,000 1,980,000 6,545,660 6,480,660 6,414,410 3,768,450 1,849,800 4,468,800
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