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Answer Spreadsheet5 2006

This document shows projected financial information for a business over 5 years, including: - Sales increase each year from 5,000 units in Year 1 to 8,745 units in Year 5. - Revenue grows from $225,000 in Year 1 to $393,526 in Year 5. - Profits before tax range from $38,000 in Year 1 to $131,626 in Year 5. - Cash flow is negative $60,000 in Year 1 but becomes positive each subsequent year, ranging from $9,080 in Year 2 to $173,752 in Year 5. - The net present value of the 5 years of cash flows is calculated to be $77,345.22 using

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26 views

Answer Spreadsheet5 2006

This document shows projected financial information for a business over 5 years, including: - Sales increase each year from 5,000 units in Year 1 to 8,745 units in Year 5. - Revenue grows from $225,000 in Year 1 to $393,526 in Year 5. - Profits before tax range from $38,000 in Year 1 to $131,626 in Year 5. - Cash flow is negative $60,000 in Year 1 but becomes positive each subsequent year, ranging from $9,080 in Year 2 to $173,752 in Year 5. - The net present value of the 5 years of cash flows is calculated to be $77,345.22 using

Uploaded by

ratikdayal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Yr 0

Yr 1

Yr 2

Yr 3

Yr 4

Yr 5

5,000
45
20
225,000
100,000
75,000
12,000
38,000
12,920
25,080

5,750
45
20
258,750
115,000
75,000
12,000
56,750
19,295
37,455

6,613
45
20
297,563
132,250
75,000
12,000
78,313
26,626
51,686

7,604
45
20
342,197
152,088
75,000
12,000
103,109
35,057
68,052

8,745
45
20
393,526
174,901
75,000
12,000
131,626
44,753
86,873

(28,000)

(13,500)

(15,525)

(17,854)

74,879

25,080
12,000
37,080

37,455
12,000
49,455

51,686
12,000
63,686

68,052
12,000
80,052

86,873
12,000
98,873

Changes in WC
Initial Capex

(60,000)

(28,000)

(13,500)

(15,525)

(17,854)

74,879

CF

(60,000)

9,080

35,955

48,161

62,198

173,752

Sales (Units)
Price
Variable Cost
Revenue
Total Variable Cost
Fixed Cost
Depreciation
Profit bfr Tax
Tax @ 34%
Net Income
Changes in WC
Equipment
Cash Flow
Net Income
+ Dep
OCF

NPV @ Disc. Rate 25%

(60,000)

$77,345.22

Note: In this solution WC is received back at year 5

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