CALCULATE FINANCIAL BREAK EVEN

ASSUME THAT DEPRECIATION IS STRAIGHT LINE

NOWC WILL BE RECOVERED BY THE END OF YEAR 4

Inputs for Each Scenario (Dollars in Thousands) Scenarios:- Scenario Name Base Worst Best Probability of Scenario 50% 25% 25%- Inputs: Equipment cost $8,250.00 $7,250.00 $8,000.00 $1,600.00 Salvage value of equip. in Year 4 $1,400.00 $1,900.00 Units sold, Year 1 10,000.00 8,500.00 11,500.00- % A in units sold, after Year 1 10% 5.00% 20.00% Sales price per unit, Year 1 $1.50 $1.25 $1.75- % A in sales price, after Year 1 5% 3.00% $1.17 6.00% $0.97 Var. cost per unit (VC), Year 1 $1.07 4% 6.00% 3.00% % A in VC, after Year 1 FIXED COST, Year 1 % A in FIXED COST, after Year 1 $2,000.00 $2,200.00 $1,800.00 4% 6.00% 3.00% Project cost of capital (r) 10% 15.00% 5.00% Tax rate 30.00% 15.00% 20% 20% NOWC as % of next year's sales 25.00% 15.00% Inputs for Each Scenario (Dollars in Thousands) Scenarios:- Scenario Name Base Worst Best Probability of Scenario 50% 25% 25%- Inputs: Equipment cost $8,250.00 $7,250.00 $8,000.00 $1,600.00 Salvage value of equip. in Year 4 $1,400.00 $1,900.00 Units sold, Year 1 10,000.00 8,500.00 11,500.00- % A in units sold, after Year 1 10% 5.00% 20.00% Sales price per unit, Year 1 $1.50 $1.25 $1.75- % A in sales price, after Year 1 5% 3.00% $1.17 6.00% $0.97 Var. cost per unit (VC), Year 1 $1.07 4% 6.00% 3.00% % A in VC, after Year 1 FIXED COST, Year 1 % A in FIXED COST, after Year 1 $2,000.00 $2,200.00 $1,800.00 4% 6.00% 3.00% Project cost of capital (r) 10% 15.00% 5.00% Tax rate 30.00% 15.00% 20% 20% NOWC as % of next year's sales 25.00% 15.00%