Professional Documents
Culture Documents
Base
Worst
6000
80
60
50000
Best
5500
75
58
45000
6500
85
62
55000
480000
360000
50000
40000
30000
10500
19500
Cash Flows
Year
OCF
0
1
2
3
4
5
59500
59500
59500
59500
59500
NPV
Cashflows
-200000
59500
59500
59500
59500
59500
$14,484.18
B. Calculate NPV with only unit Sales as the varying factor from Base Case by populating bordered section below.
Sensitivity Analysis For Unit Sales
Pro Forma Statement Base
Worst
Best
Sales
480000
440000
520000
VC
360000
330000
390000
FC
50000
50000
50000
Depreciation
40000
40000
40000
EBIT
30000
20000
40000
Taxes
10500
7000
14000
NI
19500
13000
26000
Cash Flows
Year
0
1
2
3
4
5
NPV
-200,000
59500
59500
59500
59500
59500
$14,484.18
-200,000
53000
53000
53000
53000
53000
-$8,946.86
-200,000
66000
66000
66000
66000
66000
$37,915.23
a 5-year life. There is no salvage. Depreciation is straight-line, the required return is 12%, and the tax rate is 35%
Depreciation
Taxes
Working Capital Changes
Initial Investment
40000
35%
0
200000
Worst Case
Pro Forma Statement
Sales
VC
FC
Depreciation
EBIT
Taxes
NI
552500
377000
45000
40000
90500
31675
58825
Year
OCF
0
1
2
3
4
5
98825
98825
98825
98825
98825
NPV
Cashflows
-200000
98825
98825
98825
98825
98825
$156,242.01
Year
0
1
2
3
4
5
412500
341000
55000
40000
-23500
-8225
-15275
OCF
24725
24725
24725
24725
24725
NPV
Cashflows
-200000
24725
24725
24725
24725
24725
-$110,871.91