| Net Present Value |
| IRR |
| MIRR |
| Payback |
| Discounted Payback |
| Profitabilty Index |
| Differential Stream of Cash Flows |
| Denver - Not different - DON’T do an NPV for Denver. |
| | Denver Situation | | | | | | | India Situation |
| Year | 0 | 1 | 2 | 3 | 4 | 5 | | 0 | 1 | 2 | 3 | 4 | 5 |
| Employees | 25 |
| Wage Rate | $30 | | | | | | | $10.50 |
| Productivity per Hour | 75 |
| Productivity per Hour per Employee | 3 | | | | | | | 2 | 2.3 | 2.645 | 3.04175 | 3.04175 | 3.04175 |
| Hours per day | 8 |
| Days per year | 250 |
| Labor Cost for Denver | ???? |
| Annual Wage Inflation in Denver | 6% | 6% | 6% | 6% | 6% | 6% | | | 10% | 10% | 10% | 10% | 10% |
| Units of production | ???? |
| Demand up 10% / year for five years | | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! | ERROR:#VALUE! |
| Denver Employees | y | y+future hires |
| Indirect Costs = FIXED COSTS (do not change) |
| Revenue and working capital only relevant if revenue is different in India versus Denver. |
| | | | | | | | | You can assume its to Denver warehouse or assume to Chicago. |
| Cost of Shipping Denver to Chicago per item | 0.75 | | | | | | | 5.00 |
| Shipping Inflation per year | 4% | | | | | | | 4% |
| If moved to India - year zero cost reduction | 120,000 |
| If moved to India - need materials sooner | (260,000) |
| Cost of Capital? (%) | Base rate is 14.8%, then add some premium based on your logic. |
| Years | 0 | 1 | 2 | 3 | 4 | 5 |
| Single Stream of Differential Cash Flows | Initial Outlay | Annual differential cash flows |
| | -100 | 50 | 60 | 70 | 80 | 70 |
| NPV | $117 |
| IRR | 54% |
| MIRR | 34% |
| Payback |
| PI |
Shaun008
MajorProjectSupplementScratchFile.xlsx
