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4.) Haglund Corporation has created a base case Pro-Forma Financial Statement with the information given below. Hoglund believes that its projections are accurate to +-5%.
4.) Haglund Corporation has created a base case Pro-Forma Financial Statement with the information given below. Hoglund believes that its projections are accurate to +-5%. + Identify the upper and lower bound projection variables, the best case and worst-case projection variables and the best case financial projection. Use the following template to present your work: Information: Equipment Cost $50,000 Required Rate of Return 12% Project Life 4 years Tax Rate 20% Projection Variation +- 5% Upper Lower Projection Variables Base Case Bound Bound Unit Sales 10000 Unit Price $100 Unit Variable Cost $80 Fixed Cost/Year $100,000 Annual Depreciation $12,500 Best Case parameters Worst Case Parameters Unit Sales Unit Price Unit Variable Cost Fixed Cost/Year DEPRECIATION Base Case Parameters 10000 $100 $80 $100,000 $12,500 Best Case Proforma WORST Case Proforma SALES COST OF GOODS SOLD FIXED COSTS DEPRECIATION EBIT INCOME TAX EXP NET INCOME DEPRECIATION Base Case Proforma $1,000,000 $800,000 $100,000 $12,500 $87,500 $17.500 $70.000 $12,500 $82,500 $200,581 OCF NPV Of CFFA
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