Harris Seafoods, Inc.

Is the project worth investing in? Calculate the projects cash flows using the discount rate of 13.5% and calculate the NPV and IRR.

Exhibit 5. Processing Plant Proposal-Pro Forma Income Statement and Asset Requirements Projections-1980-1986- 0% Inflation (000s) 1980 19811982 1983 19841985 1986 Sales Pounds (000s) Price per pound (S)$4.75 Revenues Cost of goods sold (excluding depreciation) Gross profit Selling, general and administrative 0 5,500 12,025 14,265 14,500 14,750 15,000 $4.75 S0 $26,125 $57,119 $67,759 $68,875 $70,063 $71,250 0 22.828 46,837 55,562 56,478 57451 58,425 $4.75 $ 4.75 S4.75 $4.75 $4.75 0 $3,297 $10,281 S12,197 $12,398 S12,611 S12,825 0 2,874 6,283 6,437 6,543 6,656 6,769 778 634 S S (410) 3,220 s5,029 S5,162 S5,294 s5.422 0 833 731 693 661 Pretax operating profit Assets Cash Accounts receivable Inventories Other current assets $450 S$261 S571 S678 689 S701 $713 0 2,176 4,758 5,644 5,737 5,836 5,935 2,485 4,561 7,962 9,446 9,601 9,767 9,932 0 523 1142 1355 1378 1401 1425 Total current assets S 2,935 S 7,521 $14,434 $17,123 $17,405 $17,705 $18,005 Net plant & equipment Other long-term 7,000 6,867 6,789 6,757 6,765 6,804 6,870 100 392 857 1016 1033 1051 1,069 $10,035 $14,780 $22,080 $24,896 $25,203 $25,560 $25,944 assets Total Assets