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Net Inc (Dec) in Cash: Investment Recovery (2,220,504.54)

This document provides financial projections for a 5-year period, including expected sales, costs, cash flows, income statements and balance sheets. It projects that 936 units will be sold in year 1 for $399 each, with a unit cost of $89.04. It calculates key metrics like return on investment of 41.93%, a payback period in the final year, and a positive net present value of $1,503,917.69 and internal rate of return above the initial investment amount.

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Crescent Osamu
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
29 views

Net Inc (Dec) in Cash: Investment Recovery (2,220,504.54)

This document provides financial projections for a 5-year period, including expected sales, costs, cash flows, income statements and balance sheets. It projects that 936 units will be sold in year 1 for $399 each, with a unit cost of $89.04. It calculates key metrics like return on investment of 41.93%, a payback period in the final year, and a positive net present value of $1,503,917.69 and internal rate of return above the initial investment amount.

Uploaded by

Crescent Osamu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Unit selling price= 399 Cash flows

Expected Number of Units to be sold in Year 1= 936 Yr1= 400,976.75

Unit cost= 89.04727564 Yr2= 441,214.34

Total initial investment= 217,164.25 Yr3= 484,153.58

Balance sheet Yr4= 530,575.17

Total assets Yr5= 580,748.95

yr 1= 606,605.91 Net cash used= (68,094.00)

Yr 2= 984,305.63 Net inc (dec) in Cash


Yr1 550,047.00
Yr 3= 1,404,949.80
Yr2 391,214.34
Yr 4= 1,872,021.04
Yr3 434,153.58
Yr 5= 2,389,271.79
Yr4 480,575.17
Total owner\s equity
Yr5 530,748.95
yr 1= 606,605.91
Beg. Balance, Cash
Yr 2= 984,305.63 Yr1
Yr 3= 1,404,949.80 Yr2 550,047.00
Yr 4= 1,872,021.04 Yr3 941,261.34
Yr 5= 2,389,271.79 Yr4 1,375,414.92

Yr5 1,855,990.09
Projected income statements End. Balance, Cash
Yr1 550,047.00
Gross profit
Yr2 941,261.34
Yr 1= 539,091.75
Yr3 1,375,414.92
Yr 2= 581,607.34
Yr4 1,855,990.09
Yr 3= 627,415.78
Yr5 2,386,739.04
Yr 4= 676,769.25

Yr 5= 729,939.09
Return on Investment
Net income
41.93%
Yr1= 254,333.95
Payback Period
Yr2= 288,088.34 Final Year
Yr3= 324,220.22 * Cumulative Cash Flow= 2,437,668.79
Yr4= 363,494.08 * Investment Recovery= (2,220,504.54)
Yr5= 406,162.74

COMPUTATION OF NET PRESENT VALUE


* Present Value= 1,721,081.94

PV of Cash Outflows
* NET PRESENT VALUE= 1,503,917.69

Internal Rate of Return


PV of cash inflow total= 938,381.05

PV of cash outflows total= (217,164.25)

Net Present Value= 721,216.80

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