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Any idea how to solve NPV, IRR, and Payback period for this table? Exhibit 2 Selected Operating Projections for Design Your Own Doll ($ in
Any idea how to solve NPV, IRR, and Payback period for this table?
Exhibit 2 Selected Operating Projections for Design Your Own Doll ($ in thousands)
Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |||
Revenue | $0 | $6,000 | $14,360 | $20,222 | $21,435 | $22,721 | $24,084 | $25,529 | $27,061 | $28,685 | ||||
Revenue Growth | 139.30% | 40.80% | 6% | 6% | 6% | 6% | 6% | 6% | ||||||
Production Costs | ||||||||||||||
Fixed Production Expense (excl depreciation) | 1,650 | 1,683 | 1,717 | 1,751 | 1,786 | 1,822 | 1,858 | 1,895 | 1,933 | |||||
Variable Production Costs | 2,250 | 7,651 | 11,427 | 12,182 | 12,983 | 13,833 | 14,736 | 15,694 | 16,712 | |||||
Depreciation | 310 | 310 | 310 | 436 | 462 | 490 | 520 | 551 | 584 | |||||
Total Production Costs | 4,210 | 9,644 | 13,454 | 14,369 | 15,231 | 16,145 | 17,114 | 18,140 | 19,229 | |||||
Selling, General & Administrative | 1,201 | 1,240 | 2,922 | 4,044 | 4,287 | 4,544 | 4,817 | 5,106 | 5,412 | 5,737 | ||||
Total Operating Expenses | 1,201 | 5,450 | 12,566 | 17,498 | 18,656 | 19,775 | 20,962 | 22,220 | 23,552 | 24,966 | ||||
Operating Profit | -1201 | 550 | 1,794 | 2,724 | 2,779 | 2,946 | 3,122 | 3,309 | 3,509 | 3,719 | ||||
Working Capital Assumptions: | ||||||||||||||
Minimum Cash Balance as % of Sales | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | |||||
Days Sales Outstanding | 59.2x | 59.2x | 59.2x | 59.2x | 59.2x | 59.2x | 59.2x | 59.2x | 59.2x | |||||
Inventory Turnover (prod. Cost/ending inv.) | 12.2x | 12.3x | 12.6x | 12.7x | 12.7x | 12.7x | 12.7x | 12.7x | 12.7x | |||||
Days Payable Outstanding (based on tot. op. exp.) | 33.7x | 33.8x | 33.9x | 33.9x | 33.9x | 33.9x | 33.9x | 33.9x | 33.9x | |||||
Capital Expenditures | 4,610 | 310 | 310 | 2,192 | 826 | 875 | 928 | 983 | 1,043 | 1,105 |
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