PROPOSED ROBOTICS PROJECT ANSWER BOX AT ROW 35 Period 0 2 3 5 6 7 8 9 10 Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1. Estimate of...
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What formulas are used to calculate NPV, PI, IRR, and PP using the following data?


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PROPOSED ROBOTICS PROJECT
ANSWER BOX AT ROW 35
Period
0
2
3
5
6
7
8
9
10
Year
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
1. Estimate of Incremental Gross Profit
New Output (tons)
267,500.0
267,500.0
267,500.0
267,500.0
267,500.0
267,500.0
267,500.0
267,500.0
267,500.0
267,500.0
Lost Output-Construction
-33,437.5
New Sales (Millions)
158.0
180.6
180.6
180.6
180.6
180.6
180.6
180.6
180.6
180.6
New Gross Margin
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
New Gross Profit
0.1
24.8
24.8
24.8
24.8
23.9
23.9
23.9
23.9
23.9
Old Output
250,000.0
250,000.0
250,000.0
250,000.0
250,000.0
250,000.0
250,000.0
250,000.0
250,000.0
250,000.0
Old Sales
168.8
168.8
168.8
168.8
168.8
168.8
168.8
168.8
168.8
168.8
Old Gross Profit
19.4
19.4
19.4
19.4
19.4
19.4
19.4
19.4
19.4
19.4
Incremental Gross Profit
2.3
5.4
5.4
5.4
5.4
4.5
4.5
4.5
4.5
4.5
2. Estimate of Incremental inventory
New inventory
4.1
4.7
4.7
4.7
4.7
4.7
4.7
4.7
4.7
4.7
Old inventory
4.5
4.5
4.5
4.5
4.5
4.5
4.5
4.5
4.5
4.5
Incremental inventory
-0.4
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
3. Estimate of Incremental Depreciation
New Depreciation
1.6
1.4
1.2
1.0
0.9
0.8
0.7
0.6
0.5
0.5
4. Overhead
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
5. Prelim. Engineering Costs
0.5
Pretax Incremental Profit
0.2
3.6
3.8
4.0
4.1
3.3
3.4
3.5
3.6
3.6
6. Cash Flow Adjustments
Less Capital Expenditures
-12.0
Add back Depreciation
1.6
1.4
1.2
1.0
0.9
0.8
0.7
0.6
0.5
0.5
Less Added inventory
0.4
-0.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
7. Free Cash Flow
-12.0
1.9
3.3
3.9
3.8
3.8
3.1
3.1
3.0
3.0
3.0
NPV
19.9
PI
-0.65734543
IRR
0.2
PP
#VALUE!

Top Answer

NPV stands for net present value of the project. Net present value = Present value of cash inflows of project - Present value... View the full answer

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