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  • Answer Spreadsheet5 2006

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    ratikdayal
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    This document shows projected financial information for a business over 5 years, including: - Sales increase each year from 5,000 units in Year 1 to 8,745 units in Year 5. - Revenue grows from $225,000 in Year 1 to $393,526 in Year 5. - Profits before tax range from $38,000 in Year 1 to $131,626 in Year 5. - Cash flow is negative $60,000 in Year 1 but becomes positive each subsequent year, ranging from $9,080 in Year 2 to $173,752 in Year 5. - The net present value of the 5 years of cash flows is calculated to be $77,345.22 using

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    Answer.spreadsheet5.2006

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    This document shows projected financial information for a business over 5 years, including: - Sales increase each year from 5,000 units in Year 1 to 8,745 units in Year 5. - Revenue grows from $225,000 in Year 1 to $393,526 in Year 5. - Profits before tax range from $38,000 in Year 1 to $131,626 in Year 5. - Cash flow is negative $60,000 in Year 1 but becomes positive each subsequent year, ranging from $9,080 in Year 2 to $173,752 in Year 5. - The net present value of the 5 years of cash flows is calculated to be $77,345.22 using

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    9 views1 page

    Answer Spreadsheet5 2006

    Uploaded by

    ratikdayal
    This document shows projected financial information for a business over 5 years, including: - Sales increase each year from 5,000 units in Year 1 to 8,745 units in Year 5. - Revenue grows from $225,000 in Year 1 to $393,526 in Year 5. - Profits before tax range from $38,000 in Year 1 to $131,626 in Year 5. - Cash flow is negative $60,000 in Year 1 but becomes positive each subsequent year, ranging from $9,080 in Year 2 to $173,752 in Year 5. - The net present value of the 5 years of cash flows is calculated to be $77,345.22 using

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 1

    Yr 0

    Yr 1

    Yr 2

    Yr 3

    Yr 4

    Yr 5

    5,000
    45
    20
    225,000
    100,000
    75,000
    12,000
    38,000
    12,920
    25,080

    5,750
    45
    20
    258,750
    115,000
    75,000
    12,000
    56,750
    19,295
    37,455

    6,613
    45
    20
    297,563
    132,250
    75,000
    12,000
    78,313
    26,626
    51,686

    7,604
    45
    20
    342,197
    152,088
    75,000
    12,000
    103,109
    35,057
    68,052

    8,745
    45
    20
    393,526
    174,901
    75,000
    12,000
    131,626
    44,753
    86,873

    (28,000)

    (13,500)

    (15,525)

    (17,854)

    74,879

    25,080
    12,000
    37,080

    37,455
    12,000
    49,455

    51,686
    12,000
    63,686

    68,052
    12,000
    80,052

    86,873
    12,000
    98,873

    Changes in WC
    Initial Capex

    (60,000)

    (28,000)

    (13,500)

    (15,525)

    (17,854)

    74,879

    CF

    (60,000)

    9,080

    35,955

    48,161

    62,198

    173,752

    Sales (Units)
    Price
    Variable Cost
    Revenue
    Total Variable Cost
    Fixed Cost
    Depreciation
    Profit bfr Tax
    Tax @ 34%
    Net Income
    Changes in WC
    Equipment
    Cash Flow
    Net Income
    + Dep
    OCF

    NPV @ Disc. Rate 25%

    (60,000)

    $77,345.22

    Note: In this solution WC is received back at year 5

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