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i am trying to find out the NPV at 8% 12% 16% and 20% using excel based off this chart. EXHIBIT 23.11 Analysis of Labor-Intensive
i am trying to find out the NPV at 8% 12% 16% and 20% using excel based off this chart.
EXHIBIT 23.11 Analysis of Labor-Intensive Alternative for Silicone-X (dollars in thousands, except per-unit data) Year 2. 3 4 5-15 $ 900 Investments Plant and equipment Change in NWC Demand (thousands of pounds) Capacity (thousands of pounds) Sales (thousands of pounds) Sales price/unit Variable costs/unit Manufacturing Marketing Total variable cost/unit $ 140 1,200 600 600 $1.90 $ 14 1,320 1,500 1,320 $1.90 $ 15 1,452 1,500 1,452 $1.90 $ 17 1,597 1,500 1,500 $1.90 $20 NA 1,500 1,500 $1.90 1.30 0.10 1.40 1.30 0.10 1.40 1.30 0.10 1.40. 1.30 0.10 1.40 1.30 0.10 1.40 Fixed costs 210 60 50 320 210 60 0 270 210 60 0 270 210 60 0 270 210 60 0 270 $1,140 840 320 Overhead Depreciation Start-up costs Total fixed costs Sales Revenue -Total Variable Costs - Total Fixed Costs Profit before taxes Taxes (tax rate = 50%) Not operating profit after taxes (NOPAT) Cash flow from operations + Profit after taxes + depreciation Capital Expenditures - Change in NWC Free cash flow Terminal value year 15) N.A. = not available. $2,508 1,848 270 390 (195) 195 $2,759 2,033 270 456 (228) 228 $2,850 2,100 270 480 (240) 240 $2,850 2.100 270 480 (240) 240 (20) 10 (10) (900) 50 0 (140) $ (90) 255 0 (14) $ 241 288 0 (15) $ 273 300 0 (17) $ 283 300 0 (20) 280 $ 381 $1900) Source: All exhibits created by case writer The capital-intensive method involved a much larger outlay for plant and equipment: $3.3 million Manufacturin EXHIBIT 23.21 Analysis of Capital-Intensive Alternative for Silicone-X (dollars in thousands, except per-unit data) Year 2 3 4 5 6 7-15 $1,900 $1,400 Investments Plant and equipment Working capital Demand (thousands of pounds) Capacity (thousands of pounds) Sales (thousands of pounds) Sales price/unit Variable cost/unit Manufacturing Selling Total variable cost/unit $ 160 $ 11 $ 17 $20 $24 1,320 1,452 1,597 1,757 1,933 700 2,000 2,000 2,000 2,000 700 1,452 1,597 1,757 1,933 $1.90 $1.90 $1.90 $1.90 $1.90 $ 30 2,125 2,000 2,000 $1.90 0.85 0.20 1.05 0.85 0.20 1.05 0.85 0.20 1.05 0.85 0.20 1.05 0.85 0.20 1.05 0.85 0.20 1.05 Fixed costs Overhead Depreciation Start-up costs Total fixed costs 110 167 100 110 167 0 110 167 0 110 167 0 110 167 0 110 167 0 1,190 735 377 8 2,468 1.525 277 522 (261) 261 2,715 1,677 277 601 (301 301 2,987 3.286 1.845 2.030 277 277 689 786 (345) (393) 345 393 3,400 2,100 277 823 (412) 412 4 Sales Revenue -Total Variable Costs -Total Fixed Costs Profit before taxes - Taxes (50%) Not operating profit after taxes (NOPAT) Cash flow from operations (NOPAT + depreciation) -Capital Expenditures -Change in NWC Froo cash flow Terminal value year 15) 276 (1.900) (1.400) 0 (160) $(1,900) $(1.400) $ 116 646 707 0 0 (17) $635 $ 690 775 850 0 0 (20) (24) 755 $826 879 0 (30) 849 $1,384 Step by Step Solution
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