Based on the financial data below, what are the cash inflows and outflows needed in the acquisition stage and operating stage of this project's life?
Baja Mexican Grill Eatimated Cash Flow Project YEAR 0 1 2 3 4 5 7 8 Acquisition Stage Assumptions: Research & Development Coate (60,000,000) Initial Promotion (24,000,000) Expenses related to new supply network 2,000,000) Employee Training $ (2. 352,800,000) Vendor Testing $ [1,500,000) Additional Investment In working capital (% of aslee: 9%) 9.00% 9.00% 5.00% 5.009% 9.009% 9.009% 9.009% 9.009% 9.005% Working Capital Balance $12,000,000 $12,820,000 $13,500,000 $13.820.000 $14,626.000 $14,935.000 $15,120,000 $15,480,000 $15.895,000 Incremental Investment In working capital $ (12,000,000) $ (820,000) $ (680,000) $ (320,000) $ (808,000) $ (307,000) $ (185,000) $ (360,000) $ (419,000) Operating Stage Assumption 0 2 3 4 5 7 8 Additional Bales of new product growth In 2-8 years $1,800,000,000 536 496 Lost aalee of exlating products growth In 2-8 years $10,000,000 $10,000.000 $10,000.000 $10,000.000 $10,000.000 $10,000,000 $10,000.000 $10,000,000 Variable cost of new product 32% $2% 321% 323% 323% 32% Additional fixed coat associated with new products 1,000.000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Tax rate 24%% 24% 24% 249% 2436 Continuing stage cash flows Aquleltion Stage Cash Flows 1 2 3 4 5 7 8 Research and Development cost (80,000,000) Initial Promotion (24,000,000) Expenses related to the new supply network 2,000,000) Employee Training $ (2.352,800,000) Vendor Testing (1,500,000) Additional Inveetement In working Capital (12,000,000) $ (820,000) $ (680,000) $ (320,000) $ (808,000) $ (307,000) $ (185,000) $ (360,000) $ (419,000) Total Aqulaltion Stage of Cash Flows $ (2 452,300,000) $ (820,000) $ (680,000) $ (320,000) $ (808,000) $ (307,000) $ (185,000) $ (360,000) $ (419,000) Operating Stage Cash Flowe 0 1 2 3 4 5 7 8 Additional Bales In new products $1,800,000,000 $1 800,785,005 $1,800,790,870 $1,800,795,735 $1,800,800,600 $1,800,805,465 $1,800,810,330 $1,800,815,195 Lost aalee of exleting product (10,000,000) $ (10,000,000) $ (10,000,000) $ (10,000,000) $ (10,000,000) $ (10,000,000) $ (10,000,000) $ (10,000,000) Variable cost of new product 576,000,000 $576,325,870 $576,651,740 $576,977,610 $577,303,480 $577,629,350 $577,955,220 $578.281.090 Additional fixed coat associated with new products (1,000,000) $ (1,000,000) $ (1,000,000) $ (1,000,000) $ (1,000,000) $ (1,000,000) $ (1,000,000) $ (1,000,000) Tax Income $2,365,000,000 $2,356,111,875 $2 365,442,610 $2,365,775,345 $2 367,104,080 $2,367,434,815 $2 367,765,550 $2.368,096,285 Taxes $567,600,000 $567 866,850 $567 946,226 $568,025,608 $568,104,979 $568.184,356 $568,263,732 $568,345,108 After Tax Income $1,797,400,000 $1 793,245,025 $1 798,495,384 $1,798,747,742 $1,798,989,101 $1,799,250,459 $1 799,501,818 $1,759,753,177 Continuing Stage 0 1 2 3 4 5 7 8 Continuing Value $8 958,768,555
