BCH 9XFx D 2013 3 4 5 Assumptions Oncourt HSP Tendre AGAR Swan Costo Fouw 10 DotCom 1001 12 1) Corey Yet To Today Y Y Yew HER NE MI 1 . WUM II 10 IM I - 04 . 1000 Vaud Costa 13 19 1 1 . .. . TO 1 M 3 . 12 KI 11.00 encon 21 2008 2000 2000 20.00 Ganhou 1 15 2000 2000 2000 20 OS 2005 5 00.000 255 MS 31 Na Prat Instructions + Company Assumptions Company Finans Company Assumptions: 3 4 $ Sale Price $ 200,000 300,000 $ 400,000 $ 150,000 $ 250,000 Production Capacity Fixed Costs Cost/Unit Produced 60,000 $ 70,000 $ 0.75 140,000 $ 150,000 $ 1.00 200,000 IS 300,000 $ 0.50 80,000 $ 50,000 $ 1.25 300,000 TS 80,000 $ 1.50 5 Company A 6 Company B 7 Company C 8 Company D 9 Company E 10 11 12 13 Definitions: 14 Sale Price 15 Production Capacity 16 Fixed Costs 17 Cost/Unit Produced 18 19 The cost to purchase the business. Any additional cash left after the purchase will be invested at the The maximum number of units the business can produce in the first year. This amount will increase e Cost the company will bear each year regardless of sales volume The cost the company will bear for each unit of production in a given year Instructions Company Assumptions Company Financing + e 5 6 7 You are looking to buy a business in the light bulb industry. You have $400,000 saved up to pay for it. Any money you do not use to buy the business will be invested at the discount rate. You have identified 5 businesses for sale that make flourecent light bulbs you could purchase. You have received the financials from each business and determined their business model and cost structure. You have also determined a steady growth rate for sales and costs. After 10 years, you believe you can sell the business for 10 times cash flow. 8 9 10 11 12 13 14 Project: 15 16 Write a 1 page analysis on which of the 5 businesses you will buy (it could be more than one). Use the Net Present Value 17 Methodology to determine which of the 5 buisnesses is the best purchase. Rank each business and discuss why you 18 would or would not buy each business. 19 20 Instruction Comany Assumptions Company Financials 2 $. Forma Sort Fier Conditions Format Call Formatting Table Styles Find Select Paste B1 Merge Center H28 Xfx N 1 D G 1 E 31 Ya 10 Termin Tatay Year: Yews Yr Y4 Year Yeart 15 ene Net Your Year Year Yet SA Voss Nel come Company refer Company Puhe Merge Center Formal Formatting Table Styles H2S v f B D E F G Yer Year Year TV Your Year 10 m Conny 71 73 M 71 75 D Wews G 73 1 C Year Tava Ceny * Werge Center Formatting stable Syles H28 Xf E M Net PVR Compt Yew Yox2 Yow Year Years Year Year Yard Year Yo remene Vale Revue VC Fels 100 111 113 11 Company Francia Scenario You are looking to buy a business in the light bulb industry. You have $400,000 saved up to pay for it. Any money you do not use to buy the business will be invested at the discount rate. You have identified 5 businesses for sale that make flourecent light bulbs you could purchase. You have received the financials from each business and determined their business model and cost structure. You have also determined a steady growth rate for sales and costs. After 10 years, you believe you can sell the business for 10 times cash flow. Instructions Write a 1 page analysis on which of the 5 businesses you will buy (it could be more than one). Use the Net Present Value Methodology to determine which of the 5 businesses is the best purchase. Rank each business and discuss why you would or would not buy each business. You will need the data in the Final Project Excel Sheet to complete the final project. To submit your Problems: Series assignment, please click on the Submit Assignment button on th top. BCH 9XFx D 2013 3 4 5 Assumptions Oncourt HSP Tendre AGAR Swan Costo Fouw 10 DotCom 1001 12 1) Corey Yet To Today Y Y Yew HER NE MI 1 . WUM II 10 IM I - 04 . 1000 Vaud Costa 13 19 1 1 . .. . TO 1 M 3 . 12 KI 11.00 encon 21 2008 2000 2000 20.00 Ganhou 1 15 2000 2000 2000 20 OS 2005 5 00.000 255 MS 31 Na Prat Instructions + Company Assumptions Company Finans Company Assumptions: 3 4 $ Sale Price $ 200,000 300,000 $ 400,000 $ 150,000 $ 250,000 Production Capacity Fixed Costs Cost/Unit Produced 60,000 $ 70,000 $ 0.75 140,000 $ 150,000 $ 1.00 200,000 IS 300,000 $ 0.50 80,000 $ 50,000 $ 1.25 300,000 TS 80,000 $ 1.50 5 Company A 6 Company B 7 Company C 8 Company D 9 Company E 10 11 12 13 Definitions: 14 Sale Price 15 Production Capacity 16 Fixed Costs 17 Cost/Unit Produced 18 19 The cost to purchase the business. Any additional cash left after the purchase will be invested at the The maximum number of units the business can produce in the first year. This amount will increase e Cost the company will bear each year regardless of sales volume The cost the company will bear for each unit of production in a given year Instructions Company Assumptions Company Financing + e 5 6 7 You are looking to buy a business in the light bulb industry. You have $400,000 saved up to pay for it. Any money you do not use to buy the business will be invested at the discount rate. You have identified 5 businesses for sale that make flourecent light bulbs you could purchase. You have received the financials from each business and determined their business model and cost structure. You have also determined a steady growth rate for sales and costs. After 10 years, you believe you can sell the business for 10 times cash flow. 8 9 10 11 12 13 14 Project: 15 16 Write a 1 page analysis on which of the 5 businesses you will buy (it could be more than one). Use the Net Present Value 17 Methodology to determine which of the 5 buisnesses is the best purchase. Rank each business and discuss why you 18 would or would not buy each business. 19 20 Instruction Comany Assumptions Company Financials 2 $. Forma Sort Fier Conditions Format Call Formatting Table Styles Find Select Paste B1 Merge Center H28 Xfx N 1 D G 1 E 31 Ya 10 Termin Tatay Year: Yews Yr Y4 Year Yeart 15 ene Net Your Year Year Yet SA Voss Nel come Company refer Company Puhe Merge Center Formal Formatting Table Styles H2S v f B D E F G Yer Year Year TV Your Year 10 m Conny 71 73 M 71 75 D Wews G 73 1 C Year Tava Ceny * Werge Center Formatting stable Syles H28 Xf E M Net PVR Compt Yew Yox2 Yow Year Years Year Year Yard Year Yo remene Vale Revue VC Fels 100 111 113 11 Company Francia Scenario You are looking to buy a business in the light bulb industry. You have $400,000 saved up to pay for it. Any money you do not use to buy the business will be invested at the discount rate. You have identified 5 businesses for sale that make flourecent light bulbs you could purchase. You have received the financials from each business and determined their business model and cost structure. You have also determined a steady growth rate for sales and costs. After 10 years, you believe you can sell the business for 10 times cash flow. Instructions Write a 1 page analysis on which of the 5 businesses you will buy (it could be more than one). Use the Net Present Value Methodology to determine which of the 5 businesses is the best purchase. Rank each business and discuss why you would or would not buy each business. You will need the data in the Final Project Excel Sheet to complete the final project. To submit your Problems: Series assignment, please click on the Submit Assignment button on th top