key results

life of project 3 NPV 8.59

unit sale price 90 IRR 21.75%
Variable cost 0.38
equipment cost 8
terminal market value equipment
SG&A % of revenues 0.12
inventory Y0 25
AP Y0 10
WC y0 15
Tax rate 0.4
discount rate 0.14
technology purchased 50
 2013 beginning 2013 2014
0 1 2
Size of hiking shoe market 350 402.5
growth rate of hiking shoe market 0.15
market share for co 0.15 0.18
G&A expenses % on sales 0.12 0.1
Sale revenues 52.5 72.45
Variable cost 19.95 27.531
G&A expenses 6.3 7.245
A&P expense 3 2
depreciation 1.6 2.56
technology purchased -50
EBIT 21.65 33.114
taxes -20 8.66 13.2456
NOPAT -30 12.99 19.8684
add: depreciation 1.6 2.56
OCF -30 14.59 22.4284
CF due to NWC -15
CF due to Capex -8
Net cash flows -53 14.59 22.4284
NPV 8.59
IRR 21.75%
 2015 SV in terminal year factory
3 MV of equip 2.32
462.875 BV of factory 2.32
0.15 Loss/gain on sale 0
0.2 tax benefit/paid 0
0.08 CF from SV 2.32
92.575
35.1785
7.406 Release of WC in terminal year
2 inventory Y3 25
1.52 AP Y3 10
WC y3 15
46.4705
18.5882 Dep rate 20% 32% 19%
27.8823 Depreciation 1.6 2.56 1.52
1.52 Depreciation cum. 1.6 4.16 5.68
29.4023 Book value 2.32
15
2.32
46.7223