GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS
Student name: Võ Thiện Nhi Student ID number: 22003855
Student name: Phi Ngọc Huy An Student ID number: 22002226
Student name: Nguyễn Ngọc Minh Thư Student ID number: 21002079
Student name: Nguyễn Hồ Nhật Nam Student ID number: 22003340
Student name Tô Minh Bảo Student ID number: 22002861
Student name: Phạm Nguyễn Trí Khang Student ID number: 21007788

UNIT AND TUTORIAL DETAILS

Unit name: Unit number:
Tutorial/Lecture: Lecture Class day and time:
Lecturer or Tutor name: Võ Hồng Đức

ASSIGNMENT DETAILS
Title: 72 hours – Take home excercise
Length: 3 days Due date: 3/1/2023 Date submitted: 3/1/2023

DECLARATION
I hold a copy of this assignment if the original is lost or damaged.
I hereby certify that no part of this assignment or product has been copied from any other student’s work or from any other source except where due acknowledgement is made in the assignment.
I hereby certify that no part of this assignment or product has been submitted by me in another (previous or current) assessment, except where appropriately referenced, and with prior permission from the Lecturer / Tutor / Unit Coordinator for this unit.
No part of the assignment/product has been written/ produced for me by any other person except where collaboration has been authorised by the Lecturer / Tutor /Unit Coordinator concerned.
I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking).
Student’s signature: Nhi
Student’s signature: An
Student’s signature: Thư
Student’s signature: Bảo
Student’s signature: Khang
Note: An examiner or lecturer / tutor has the right to not mark this assignment if the above declaration has not been signed.
Selling price: 2$
Less variable cost: $1
Contribution: $1
Units: 900,000
Total contribution: $ 900,000

NOTE: $500,000 is sunk cost because it is already spent Incremental working capital
Year MARCS (7 years rate) Depreciation (cost rate) Year Existing working capital 0 1 2 3
0 Working Capital $320,000 $400,000 $430,000 $340,000 $320,000
1 14.29% $142,900 -$80000 -$30,000 $90,000 $20,000
2 24.49% $244,900
3 17.49% $174,900
Accumulated depreciation $526,700
Book Value : $1,000,000 - $526,700= $437,300

CAPITAL BUDGETING ANALYSIS

Year 1 2 3
Contribution $900,000 $900,000 $900,000
Less: Depreciation $142,900 $244,900 $174,900
EBT $757,100 $655,100 $725,100
Less : Tax @21% $158,991 $137,571 $152,271
Net income $598,109 $517,529 $572,829
Add: Depreciation $142,900 $244,900 $174,900
Add: Sale of machinery - - $437,300
Less: Increase in working capital -$30,000 - -
Add: Decrease in working capital - $90,000 $20,000
Free cash flow $711,009 $854,429 $1,205,029