MILESTONE $3$ METRICS

SHOW ALL YOUR SUPPORTING CALCULATIONS! You may do this either within the cell by using formulas, out to the right, or both $--$ clearly labeling your work.

All your work must be shown on this sheet, not on a separate tab.

Showing your work is worth $5$ points!

$1(14$ pts$)$ Based upon the figures below and the financial forecast for the years $2023-2027,$ compute $1$a through $1$d below, placing your final results in the yellow highlighted area.

HINT: All formulas needed to solve $1$a $-1$d come from your Week $4$ Lesson and Week $4$ Chapter readings.

GIVEN: $20232024202520262027$

Quantity of windows sold $($Q$)4,0005,0006,0007,0008,000$

Selling price per window $($P$)$ $$1,000$ $$1,000$ $$1,000$ $$1,000$ $$1,000$

Variable Costs per window $($VC$)$ $$500$ $$600$ $$583$ $$571$ $$625$

Total Fixed Costs $($FC$)$ $$500,000$ $$500,000$ $$500,000$ $$500,000$ $$500,000$

Total Variable Costs $($TVC$)$ $$2,000,000$ $$3,000,000$ $$3,500,000$ $$4,000,000$ $$5,000,000$

SOLVE FOR: $20232024202520262027$

a Contribution Margin Ratio $3$ pts

b Breakeven in sales dollars $3$ pts

c DOL $4$ pts

d DFL $4$ pts

$2(14$ pts$)$ Based upon your financial forecast for the years $2023-2027,$ compute $2$a through $2$d below FROM THE VIEWPOINT OF THE SHARK,

placing your final results in the yellow highlighted area.

$($HINT: See Week $6$ Lesson for $2$b $-2$d$.$ No hint for $2$a$!)$

GIVEN:

NOTE $1$: The shark's investment of $$1,000,000$ gave him $25\%$ ownership of your company and its profits.

NOTE $2$: The shark requires a $9\%$ Rate of Return on his investment.

NOTE $3$: $20232024202520262027$

Cash Flows from Operations

$($Total for company$)($$$1,000,000)$ $$372,212$ $$843,095$ $$1,066,542$ $$1,330,902$ $$1,554,349$

SOLVE FOR: $20232024202520262027$

a Cash Flows from Operations

$($shark only$)3$ pts

b

Payback $($in years$)$ of the

shark's $$1$M investment

$($x$.$xx years$)3$ pts

c IRR of shark's investment $4$ pts

d NPV of shark's investment $4$ pts

$3(3$ pts$)$ What is the growth rate of Net Income for each of the forecasted years?

$($HINT: See Week $2$ Lesson, horizontal analysis$)20232024202520262027$

$4(4$ pts$)$ Compute the following for the forecasted years. $($Total company$)$

$($HINT: See Week $1$ Chapter readings for FCF formula$)$

GIVEN:

NOTE $1$: Dividends are zero every year.

NOTE $2$: $$750,000$ of the $$1$M invested by the shark was spent on Capital Expenditures in $2023.$ No other capital expeditures occurred.

SOLVE FOR: $20232024202520262027$

a Free Cash Flow $3$ pts

b Free Cash Flow per share $1$ pt