Question
Build a 5 year capital budget based on most likely assumptions. Calculate: Investment: price, quantity, revenue, expenses, salaries, supplies, depreciation, total expense, net income, tax,
Build a 5 year capital budget based on most likely assumptions. Calculate: Investment: price, quantity, revenue, expenses, salaries, supplies, depreciation, total expense, net income, tax, net income after tax, plus depreciation, net cash flow, present value factor, present value of cash flow, evaluation measures NPV AND IRR. Please include all formulas and detailed calculations for all areas used in the answer and explanation. I need the calculations for year 0, 1, 2, 3, 4, 5, and total just for the most likely assumption. I already submitted this question but I received the calculations just for year 1, but I need the calculations for every year until year 5.
Assumptions | Most Likely | Best case | Worst case |
Quantity | 2,400 | 2,640 | 2,160 |
Price | $100.00 | $110.00 | $90 |
Salaries | $120,000 | $110,000 | $130,000 |
Supplies | $12.50 | $11.00 | $14.00 |
Depreciation | $60,000 | $60,000 | $60,000 |
Growth rate, output | 2.0% | 3.0% | 1.0% |
Inflation rate, output prices | 2.0% | 4.0% | 0.0% |
Inflation rate, expenses (not depreciation) | 3.0% | 1.0% | 5.0% |
Tax rate | 35.0% | 35.0% | 35.0% |
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