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Assumptions Optimistic Realistic Pessimistic Units 5,000 4,500 4,000 Sales Price $95.00 $90.00 $85.00 Variable Costs $60.00 $64.00 $68.00 Depreciation $10,000 $10,000 $10,000 Fixed Costs $25,000
Assumptions | Optimistic | Realistic | Pessimistic |
Units | 5,000 | 4,500 | 4,000 |
Sales Price | $95.00 | $90.00 | $85.00 |
Variable Costs | $60.00 | $64.00 | $68.00 |
Depreciation | $10,000 | $10,000 | $10,000 |
Fixed Costs | $25,000 | $25,000 | $25,000 |
Tax Rate | 25.00% | 25.00% | 25.00% |
Variable Costs | |||||||
Sales | |||||||
Variable Costs | |||||||
Gross Profit | |||||||
Depreciation | |||||||
Fixed Costs | |||||||
EBIT | |||||||
Interest Expense | |||||||
Taxable Income | |||||||
Taxes | |||||||
Net Income | |||||||
Periods | 0 | 1 | 2 | 3 | 4 | 5 | NPV |
Cash Flows | -$200,000 | ||||||
Required Return | 12.00% |
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