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I am trying to figure out how the tables are calculated- (please use the data populated below and walk me step by step, so I
I am trying to figure out how the tables are calculated- (please use the data populated below and walk me step by step, so I can calculat these by myself)
Yellow highlighted cells are cells for inputs. Team should verify all other calculations & formats | |||||||||||||||||||
A | B | C | D | E | F | G | H | ||||||||||||
1 | Inputs | ||||||||||||||||||
2 | ATSV old @ t=0 | 375 | ATSV formula = | SV-[(SV-BV)tax rate] | |||||||||||||||
3 | Equipment | 2000 | |||||||||||||||||
4 | Tax Credit | 100 | |||||||||||||||||
5 | Depreciaton per year | 300 | |||||||||||||||||
6 | Sales period 1 | 1000 | growth: | g yrs 2-3 = | 15% | g yrs 4-6 = | 5% | ||||||||||||
7 | CoGS %of sales | 45% | |||||||||||||||||
8 | SG&A exp. %of sales | 10% | |||||||||||||||||
9 | ATSV new @ t=6 | 300 | |||||||||||||||||
10 | |||||||||||||||||||
11 | Operating Life CFs | ||||||||||||||||||
12 | Time | 0 | 1 | 2 | 3 | 4 | 5 | 6 | |||||||||||
13 | Sales | $1,000 | $1,150 | $1,323 | $1,389 | $1,458 | $1,531 | ||||||||||||
14 | - COGS | -450 | -518 | -595 | -625 | -656 | -689 | ||||||||||||
15 | - SG&A expenses | -100 | -115 | -132 | -139 | -146 | -153 | ||||||||||||
16 | - Depreciation | -300 | -300 | -300 | -300 | -300 | -300 | ||||||||||||
17 | = EBIT | 150 | 218 | 295 | 325 | 356 | 389 | ||||||||||||
18 | -Taxes (40%) | -60 | -87 | -118 | -130 | -142 | -156 | ||||||||||||
19 | = Net Income | 90 | 131 | 177 | 195 | 214 | 233 | NPV Scenario / Risk Analysis: | |||||||||||
20 | + Depreciation | 300 | 300 | 300 | 300 | 300 | 300 | Complete the grids below to report 5x5 Grids of NPV vs input variable changes noted | |||||||||||
21 | = Operating CF | 390 | 431 | 477 | 495 | 514 | 533 | ||||||||||||
22 | |||||||||||||||||||
23 | Time 0 Investments | NPV Analysis Grid: NPV vs Discount Rate & Salvage Value Ranges | |||||||||||||||||
24 | Equipment | -2,000 | SV -> | SV-20% | SV-10% | SV Base | SV+10% | SV+20% | |||||||||||
25 | ATSV old | 375 | 300 | ||||||||||||||||
26 | Tax credit | 100 | ATSV -> | ATSV-20% | ATSV-10% | ATSV Base | ATSV+10% | ATSV+20% | |||||||||||
27 | NWC | 200 | $NPV in Cells: | ||||||||||||||||
28 | Cost of Capital 4% | $1,487 | $1,510 | $1,534 | $1,558 | $1,582 | |||||||||||||
29 | Terminal Non-OCF: | 6% | $1,289 | $1,310 | $1,331 | $1,352 | $1,373 | ||||||||||||
30 | ATSV new @ t=6 | 300 | 8% | $1,111 | $1,130 | $1,148 | $1,167 | $1,186 | |||||||||||
31 | NWC | 200 | 10% | $950 | $967 | $984 | $1,001 | $1,018 | |||||||||||
32 | = Net Cash Flow | -$1,325 | $390 | $431 | $477 | $495 | $514 | $1,033 | 12% | $805 | $820 | $836 | $851 | $866 | |||||
33 | = Cummulative CF | -$1,325 | -$935 | -$505 | -$27 | $468 | $981 | $2,015 | |||||||||||
34 | |||||||||||||||||||
35 | Cost of Capital | 12% | |||||||||||||||||
36 | NPV | $836 | |||||||||||||||||
37 | IRR = | 29.2% | NPV Analysis Grid: NPV vs Discount Rate & Year 1 Sales Ranges | ||||||||||||||||
38 | PBP = | 3.05 | |||||||||||||||||
39 | PI = | 1.63 | Sales Yr.1 -> | Sales Yr.1 -20% | Sales Yr.1 -10% | Sales Yr.1 Base | Sales Yr.1 +10% | Sales Yr.1 +20% | |||||||||||
40 | $NPV in Cells: | ||||||||||||||||||
41 | NPV Data Table | -$184 | -$183 | -$184 | -$183 | $1,901 | Cost of Capital 4% | $1,167 | $1,351 | $1,534 | $1,718 | $1,901 | |||||||
42 | Rates | NPV | $179 | 6% | $988 | $1,160 | $1,331 | $1,502 | $1,674 | ||||||||||
43 | $160 | 8% | $828 | $988 | $1,148 | $1,309 | $1,469 | ||||||||||||
44 | $145 | 10% | $683 | $834 | $984 | $1,134 | $1,285 | ||||||||||||
45 | $130 | 12% | $553 | $694 | $836 | $977 | $1,118 | ||||||||||||
46 | $553 | ||||||||||||||||||
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NPV Analysis Grid: NPV vs Discount Rate \& Cost of Goods Sold (CoGS) Percent Ranges NPV Analysis Grid: NPV vs Discount Rate \& Year 1 Sales Ranges NPV Analysis Grid: NPV vs Discount Rate \& Cost of Goods Sold (CoGS) Percent Ranges NPV Analysis Grid: NPV vs Discount Rate \& Year 1 Sales Ranges
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