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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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