Question
Here is all the info I said I would have for you on each of our projects and businesses. Phineas Lab if sold now would
Here is all the info I said I would have for you on each of our projects and businesses.
Phineas Lab if sold now would have a value of $25M. I estimated that it can be productively used for 4 more years at which time its market value would be down to $10M. Annual Operating and Maintenance costs for the lab are $35M. The lab will produce no revenue at all until year 4; $290M of revenue will be made in year 4.
Ferb Lab cannot be reliably run without an upgrade of $90M now, after which time expect Annual Operating and Maintenance costs for the lab to be $25M. Without that upgrade, the lab is essentially worthless. If upgraded then in four years, the lab will be worth $50M. Like Phineas, no revenue is expected until year 4 at which time it will make $170M.
Baljeet Tjinder, through his company Tequila Mockingbird, is offering to buy our food production company Jurassic Pork. Their offer is $105M but not until 5 years from now (when he gets out of prison). I went ahead and worked the weekend (not that you would notice) to calculate the profit from year 5 to 15 for your reference. It seems to grow by 10% each year after year 6.
Table 1: Profit projection in $M USD for our food production facility, Jurassic Pork
Carl the Intern was put in charge of the companys retirement accounts. Also, over the last 8 years have you actually been watching Carl? He lost your coffee money, $150 per year over the last 5 years (1-5), gambling in an Irish pub and then tried to make your money back and lost $350 a year for years 6 8. At 9.6% per year compounded monthly, Im not sure how much that is but I think its worth firing him.
Linda Flynn-Fletcher - I went over the data provided by Linda Flynn-Fletcher in the Financial Analysis Group. I used a real rate of 4.86% interest and 4.9% inflation to decide the following:
Between Phineas and Ferb, I compared one against the other using an inflationadjusted rate and with consideration for opportunity cost to get:
1- By the end of year 4, Phineas has a future worth of $____________ M USD.
2- Ferb has a future worth of $_____________ M USD.
3- I choose to keep __________________ open.
4- It has a $_____________ M USD profit in year 4 after all costs are accounted for, and in comparison to the other lab.
5- Baljeet Tjinder, he offered us $105M in 5 years for Jurassic Pork. Using a 10% rate, I calculated that Jurassic Pork is worth $ ___________ M USD in year 5.
6- Adjusted for inflation, the current value of his offer is $____________ M USD
7- Carl the Intern has evidently been messing around for years.
Without consideration for inflation he has lost us $_________________ K USD in PW. I fired him.
25 20 15 10 5 0 0 1 4 5 6 7 8 9 10 11 12 13 14 15 25 20 15 10 5 0 0 1 4 5 6 7 8 9 10 11 12 13 14 15
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