Assessment
joypos
helpwithassessment2excel.xlsxCash Flows for Students
| Sales | 20,000,000 | ||||||||
| Cost of Sales | 12,000,000 | ||||||||
| Major Equipment Purchase | |||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | |
| Sales | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |
| Cost of Sales | 11,400,000 | 11,400,000 | 11,400,000 | 11,400,000 | 11,400,000 | 11,400,000 | 11,400,000 | 11,400,000 | |
| MACRS 7 Schedule | 14.29% | 24.49% | 17.49% | 12.49% | 8.93% | 8.92% | 8.93% | 4.46% | |
| Depreciation | 1,429,000 | 2,449,000 | 1,749,000 | 1,249,000 | 893,000 | 892,000 | 893,000 | 446,000 | |
| Earnings before taxes | 7,171,000 | 6,151,000 | 6,851,000 | 7,351,000 | 7,707,000 | 7,708,000 | 7,707,000 | 8,154,000 | |
| Income taxes | 1,792,750 | 1,537,750 | 1,712,750 | 1,837,750 | 1,926,750 | 1,927,000 | 1,926,750 | 2,038,500 | |
| Net income | 5,378,250 | 4,613,250 | 5,138,250 | 5,513,250 | 5,780,250 | 5,781,000 | 5,780,250 | 6,115,500 | |
| Add depreciation | 1,429,000 | 2,449,000 | 1,749,000 | 1,249,000 | 893,000 | 892,000 | 893,000 | 446,000 | |
| Operating cash flows | 6,807,250 | 7,062,250 | 6,887,250 | 6,762,250 | 6,673,250 | 6,673,000 | 6,673,250 | 6,561,500 | |
| Initial investment | -10,000,000 | 375,000 | |||||||
| Net cash flows | -10,000,000 | 6,807,250 | 7,062,250 | 6,887,250 | 6,762,250 | 6,673,250 | 6,673,000 | 6,673,250 | 6,936,500 |
| NPV | 29,183,703.2 | ||||||||
| IRR | 67.55% | ||||||||
| PI | 3.92 | ||||||||
| B. Expansion into Europe | |||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||
| Net cash flows | -8,000,000 | 6,160,000 | 6,160,000 | 6,160,000 | 6,160,000 | 7,160,000 | |||
| C. Marketing/Advertising Campaign | |||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | |||
| Net cash flows | -2,000,000 | 5,400,000 | 5,400,000 | 5,400,000 | 5,400,000 | 5,400,000 | 6,900,000 |
