Please complete this worksheet showing all calculations for this case. Submit th
ID: 1175975 • Letter: P
Question
Please complete this worksheet showing all calculations for this case. Submit this to your professor for grading. Complete all colored spaces.
CONCH REPUBLIC ELECTRONICS
Student Name:
Student
Assumptions, provided in the text
Equipment
$ 34,500,000.00
Salvage value
$ 3,500,000.00
R&D
$ 750,000.00
Marketing study
$ 200,000.00
Year 1
Year 2
Year 3
Year 4
Year 5
Sales(units)
64000
106000
87000
78000
54000
Depreciation rate
14.29%
24.49%
17.49%
12.49%
8.93%
Price
$ 480.00
VC
$ 205.00
per unit
FC
$ 5,100,000.00
Tax rate
35%
NWC percentage
20%
Required return
12%
RUBRIC
Earned
Maximum
Initial Cost Outlay
1
2
3
4
5
Year 1
Year 2
Year 3
Year 4
Year 5
2
Sales
$30,720,000.00
$50,880,000.00
$41,760,000.00
$37,440,000.00
$25,920,000.00
2
Variable cost
$13,120,000.00
$21,730,000.00
$17,835,000.00
$15,990,000.00
$11,070,000.00
2
Fixed costs
$5,100,000.00
$5,100,000.00
$5,100,000.00
$5,100,000.00
$5,100,000.00
5
Depreciation
$4,930,050.00
$8,449,050.00
$6,034,050.00
$4,309,050.00
$3,080,850.00
2
EBT
$7,569,950.00
$15,600,950.00
$12,790,950.00
$12,040,950.00
$6,669,150.00
3
Tax
$2,649,482.50
$5,460,332.50
$4,476,832.50
$4,214,332.50
$2,334,202.50
NI (net income)
$4,920,467.50
$10,140,617.50
$8,314,117.50
$7,826,617.50
$4,334,947.50
Depreciation
$4,930,050.00
$8,449,050.00
$6,034,050.00
$4,309,050.00
$3,080,850.00
2
OCF (operating cash flow)
$9,850,517.50
$ 18,589,667.50
$14,348,167.50
$12,135,667.50
$7,415,797.50
.
NWC
Beginning Balance of NWC
$6,144,000.00
$10,176,000.00
$8,352,000.00
$7,488,000.00
$5,184,000.00
Changes in Net Working Capital
$4,032,000.00
-$1,824,000.00
-$864,000.00
-$2,304,000.00
5
Net Working Capital Cash Flow
$3,706,517.50
$8,413,667.50
$5,996,167.50
$4,647,667.50
$48,289,609.30
-34,500,000.00
5
Net CF
$ (34,500,000)
$3,706,517.50
$8,413,667.50
$5,996,167.50
$4,647,667.50
$48,289,609.00
Enter your calculations for book value of equipment and determining the cash flow on the sale of the equipment
Enter in the cash flow from the equipment in 5 years
10
Cash flow on Project
2
Discounted Cash Flow
10
1
Payback
10
2
Profitability Index
1.290
20
3
Internal Rate of Return
20.0%
20
4
Net Present Value
$10,139,166.32
Please complete this worksheet showing all calculations for this case. Submit this to your professor for grading. Complete all colored spaces.
CONCH REPUBLIC ELECTRONICS
Student Name:
Student
Assumptions, provided in the text
Equipment
$ 34,500,000.00
Salvage value
$ 3,500,000.00
R&D
$ 750,000.00
Marketing study
$ 200,000.00
Year 1
Year 2
Year 3
Year 4
Year 5
Sales(units)
64000
106000
87000
78000
54000
Depreciation rate
14.29%
24.49%
17.49%
12.49%
8.93%
Price
$ 480.00
VC
$ 205.00
per unit
FC
$ 5,100,000.00
Tax rate
35%
NWC percentage
20%
Required return
12%
RUBRIC
Earned
Maximum
Initial Cost Outlay
1
2
3
4
5
Year 1
Year 2
Year 3
Year 4
Year 5
2
Sales
$30,720,000.00
$50,880,000.00
$41,760,000.00
$37,440,000.00
$25,920,000.00
2
Variable cost
$13,120,000.00
$21,730,000.00
$17,835,000.00
$15,990,000.00
$11,070,000.00
2
Fixed costs
$5,100,000.00
$5,100,000.00
$5,100,000.00
$5,100,000.00
$5,100,000.00
5
Depreciation
$4,930,050.00
$8,449,050.00
$6,034,050.00
$4,309,050.00
$3,080,850.00
2
EBT
$7,569,950.00
$15,600,950.00
$12,790,950.00
$12,040,950.00
$6,669,150.00
3
Tax
$2,649,482.50
$5,460,332.50
$4,476,832.50
$4,214,332.50
$2,334,202.50
NI (net income)
$4,920,467.50
$10,140,617.50
$8,314,117.50
$7,826,617.50
$4,334,947.50
Depreciation
$4,930,050.00
$8,449,050.00
$6,034,050.00
$4,309,050.00
$3,080,850.00
2
OCF (operating cash flow)
$9,850,517.50
$ 18,589,667.50
$14,348,167.50
$12,135,667.50
$7,415,797.50
.
NWC
Beginning Balance of NWC
$6,144,000.00
$10,176,000.00
$8,352,000.00
$7,488,000.00
$5,184,000.00
Changes in Net Working Capital
$4,032,000.00
-$1,824,000.00
-$864,000.00
-$2,304,000.00
5
Net Working Capital Cash Flow
$3,706,517.50
$8,413,667.50
$5,996,167.50
$4,647,667.50
$48,289,609.30
-34,500,000.00
5
Net CF
$ (34,500,000)
$3,706,517.50
$8,413,667.50
$5,996,167.50
$4,647,667.50
$48,289,609.00
Enter your calculations for book value of equipment and determining the cash flow on the sale of the equipment
Enter in the cash flow from the equipment in 5 years
10
Cash flow on Project
2
Discounted Cash Flow
10
1
Payback
10
2
Profitability Index
1.290
20
3
Internal Rate of Return
20.0%
20
4
Net Present Value
$10,139,166.32
Explanation / Answer
0 1 2 3 4 5 Sales units 64000 106000 87000 78000 54000 Sales revenue 30720000 50880000 41760000 37440000 25920000 Variable cost 13120000 21730000 17835000 15990000 11070000 Fixed cost 5100000 5100000 5100000 5100000 5100000 Depreciation 4930050 8449050 6034050 4309050 3080850 EBT 7569950 15600950 12790950 12040950 6669150 Tax at 35% 2649483 5460333 4476833 4214333 2334203 NNOPAT 4920468 10140618 8314118 7826618 4334948 Add: Depreciation 4930050 8449050 6034050 4309050 3080850 OCF 9850518 18589668 14348168 12135668 7415798 Capital expenditure 34500000 NWC: ` NWC required (20%) 6144000 10176000 8352000 7488000 5184000 Change in NWC 6144000 4032000 -1824000 -864000 -7488000 Net CF -34500000 3706518 14557667.5 16172168 12999668 14903798 PVIF at 12% 1 0.89286 0.79719 0.71178 0.63552 0.56743 PV -34500000 3309391 11605283 11511029 8261524 8456815 43144042 NPV 8644042 Cumulative cash flows -30793483 18264185 30729835 29171835 27903465 Payback period = 1+30793483/14557668 = 3.12 Years PI = 43144042/34500000 = 1.25 IRR: PVIF AT 20% 1 0.83333 0.69444 0.57870 0.48225 0.40188 PV at 20% -34500000 3088765 10109491 9358893 6269130 5989502 315781 PVIF at 21% 1 0.82645 0.68301 0.56447 0.46651 0.38554 PV at 21% -34500000 3063238 9943083 9128767 6064441 5746059 -554413 IRR = 20+554413/(315781+554413) = 20.64
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.