10,000,000) IC NWC (100,000650,000)(750,000) 450,0001,050,000 7,500,000 15,000,0
ID: 2789893 • Letter: 1
Question
10,000,000) IC NWC (100,000650,000)(750,000) 450,0001,050,000 7,500,000 15,000,000 15,000,000 10,500,000 6,500,000 4,000,000 8,000,000 8,000,000 5,600,000 4,000,000 500,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Sales 6 500,000 500,000 500,000 500,000 EBT T(.34) NI +D 1,000,000 4,500,000 4,500,000 2,400,000 1,530,000 1,530,000 660,000 2,970,000 2,970,000 1,584,000 340,000 816,000 10 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 3,584,000 2,000,000 12 13 14 15 16 17 18 19 Question (5 bonus pts on final): If each year's price per unit decreases from the current level by 15%, do we still accept the project? Please reference all cells and make the link in cell "A1", 20 21 OCF Salvage FCF 2,660,000 4,970,0004,970,000 (10,100,0002,010,000 4,220,000 4,970,000 4,034,000 3,050,000 NPV-$3,597,996.91 Accept! IRR- 22.3096 Accept! so that the cell "A1" is the only cell to change to update the final conclusion. (Note that VCs vary with sales accordingly.) Please print and turn in your work on 2 pages ONLY: one contains the new solution table; the other contains the formulas (See "Formulas" column, then "Show Formulas") Deadline: Start of Monday (11/27) class. Each one's formula sheet should be different. Identical formula sheets will earn 5 deficit points. 23 24 25 You may be asked to present your results in class. Bonus Question Pagel-SolutionTable Page2-SolutionFormulasExplanation / Answer
Formula in the Original Sheet
Sheet with reduction of 15% price YOY basis
Formula in the sheet
Original Sheet - 1 2 3 4 5 IC (1,00,00,000) X X X X X NWC (1,00,000) (6,50,000) (7,50,000) - 4,50,000 10,50,000 Sales 75,00,000 1,50,00,000 1,50,00,000 1,05,00,000 65,00,000 -VC 40,00,000 80,00,000 80,00,000 56,00,000 40,00,000 -Fc 5,00,000 5,00,000 5,00,000 5,00,000 5,00,000 -D 20,00,000 20,00,000 20,00,000 20,00,000 20,00,000 EBT 10,00,000 45,00,000 45,00,000 24,00,000 - -T(.34) 3,40,000 15,30,000 15,30,000 8,16,000 - NI 6,60,000 29,70,000 29,70,000 15,84,000 - +D 20,00,000 20,00,000 20,00,000 20,00,000 20,00,000 OCF X 26,60,000 49,70,000 49,70,000 35,84,000 20,00,000 Salvage X X X X X - FCF (1,01,00,000) 20,10,000 42,20,000 49,70,000 40,34,000 30,50,000 NPV= 35,97,997.82 Accept! IRR= 22.30% Accept!Related Questions
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