Net Present Value and Discounted Payback Period Using the amount of capital expenditures incurred in 2021 from 2b above (which is considered to be an initial investment outflow), assume the company will generate operating cash inflows of $15 million the first year, $28 million the second year, $58 million the third year, $72 million the fourth year, $85 million the fifth year, and $55 million the sixth year. a.) What is the NPV using the company's WACC calculated in 2a above as the discount rate and what is the Internal Rate of Return? b.) Did the company make a good investment decision using the NPV criteria? c.) If the company had a discounted payback period policy of four years, did it make a sound investment decision (use the company's calculated WACC for the discount rate)? a 3 Income Statement D For the Fiscal Period Ending 14 Reclassified 12 months Jul 30-2017 USD 15 Currency Reclassified 12 months Jul 29, 2018 USD 12 months Jul-28-2019 USD 12 months Aug-02-2020 USD 12 months Aug-01-2021 USD 56370 0.0150 8.1070 3,091 84700 5,837,0 6,6160 0,1070 8,691.0 3,476.0 33910 2,4460 41540 2461.0 5390 2.7110 5683 0 3,000.0 56820 20140 1,090 0 930 11770 910 130 BBD 15190 920 13800 840 (2400) (2110 1230 1000 (2060) 9430 1,057.0 1,6940 1,717,0 1,204.0 16 17 Reven 18 Other Revenue 19 Total Revenue 20 21 Cost of Goods Sold 22 Gross Profit 23 24 Seting General & Admin Exp 25 R&DE 26 Depreciation & Amort 27 Other Operating Expense Income) 28 29 Other Operating Exp. Total 30 31 Operating Income 32 33 Interest Expense 34 interest and rest income 35 Net Interest Exp. 36 37 Currency Exchange Gains (los) 38 Other Non-Operating Inc. (Exp) 39 EBTExcl. Unusual Items 40 41 Restructuring Changes 42 Merger & Related Retract Charges 43 maitment of Goodwill 44 Gain (Loss) On Sale or lives 45 Giornale Accole Income Statement Balance Sheet 1,5030 1,404.0 1,1170 1,2910 1,810.0 (1150) (1830) 30 (1800) 3.500) 20 (3540) (3450) 40 (3410) (2100) 10 (209.01 11150) (150) 10 (20) (10) 1,373.0 1,225.0 7630 9480 1.400.0 (480) (1210) (2020) (1070) (890) 53:09 190) (100) (10) (490) 4 m TO 111 01 Cash Flow B 0 D E E F (150) TO (20) (10) 1,373.0 1,225.0 763.0 948.0 1,400,0 (480) 2020) (1070) (1210) (690) (530) (90) (100) (10) (490) (540) (540) (110) (160) (220) 1,3160 830.0 525.0 7660 1,336 0 3920 924.0 1060 724.0 86 B7 Currency Exchange Gains (Loss) 38 Other Non-Operating inc (Exp 39 EBT Excl Unusual Items 40 41 Restructuring Charges 42 Merger & Related Result Charges 13 Impairment of Goodwill 44 Gain (Loss) On Sale Of Invest 45 Gain (Loss) On Sale Of Assets 46 Assel Whitedown 47 Legal Settlements 48 Other Unusual 49 EBT Incl. Unusual Items 50 51 Income Tax Expense 52 Earnings from Cont Ops 53 > 54 Earrings of Discontinued Ops 55 Extraordter & Account Change 56 Net Income to Company 57 58 Minonty int in Earnings 59 Net Income 60 61 62 63 64 65 66 67 6B 69 70 Income Statement Balance Sheet 1510 474.0 1740 5920 3200 1,008.0 7) (4630) (2630) 10360 (80) 8870 251.0 2110 1,6280 1,0020 8870 2610 211.0 16280 1.0020 Cash Flow D Jul-30-2017 USD Reclassified Jul-29-2018 USD Jul-28-2019 USD Aug-02-2020 USO Aug-01-2021 USD 3190 319,0 490 49.0 310 31.0 6500 859.0 090 690 5100 5050 5500 560 6050 530 6300 150 5750 5440 510 5950 563.0 6740 > > 9020 740 1.8000 8810 7970 2.296,0 3830 499.0 1.9670 8710 800 2.385.0 9330 90 1.695.0 13 Balance Sheet Balance Sheet as of: 14 15 Currency 16 ASSETS 17 Cash And Equivalents 18 Total Cash & ST Investments 19 20 Accounts Receivable 21 Other Recewables 22 Total Receivables 23 24 Inventory 25 Other Current Assets 26 Total Current Assets 22 28 Gross Property, Plant & Equipment 29 Accurred Depreciation 30 Net Property. Plant & Equipment 31 32 Long-term Investments 33 Goodwill 34 Other intangibles 35 Deferred Tax Assets LT 36 Other Long Term Assets 37 Total Assets 38 39 LIABILITIES 40 Accounts Payable 41 Accrued Exp 42 Short term Borrowings 43 Curr Port of LT Debt 44 Curr Port of Leases 45 Cur Income Taxes Payable 46 Other Current Liabilities 47 Total Current Liabilities 45 Income Statement 50430 5890 2.454.0 52390 BAUTO) 24660 52150 2.7000) 2.455.0 5,5390 20170) 2.622.0 5,7240 1190) 2.6050 770 40170 34150 090 2 1150 1,1180 300 340 7.725.0 320 38540 30540 20 241850 14.529.0 3.000 33500 39810 3.2300 12170 13.1430 290 12.372.0 2140 11.734. 1050 MO 1.1350 3900 1,0700 5130 370 3000 1940 1000 220 10 200 1560 2395.0 8140 5720 8500 5000 210 150 6130 3,385.0 10490 6010 278 0 9210 700 200 1300 3,075.0 100 8000 30940 650 50 1240 1814.0 Balance Sheet Cash Flow B D E F 79910 24920 70 SOBO 4900 1850 6.0810 3470 9000 2040 13,1560 7.101 20 3830 5940 2150 12.036.0 4.0000 1000 1620 9140 1740 9.8030 3.0020 1880 1410 10510 IMO 5800 120 500 21850 (1.000) (20) 1.6370 120 3400 22240 (1.1030 (1180) 13640 120 3720 19000 (1070) 1980) 1.100 120 3040 300 11.02:30) 1100) 2.5630 120 4140 3.00 (1021) 50 3.1520 80 90 90 60 20 48 49 Long Term Dett So Long-Term Leases 51 Pension & Other Post Retre Benefits 52 Del Tax Labaty. Non-Cut 53 otherhon Currentes 54 Total Liabilities 55 56 Common Stock 57 AddoPad Capa 58 Red wings 59 Treasury Stock 60 Comprehensive and Other 61 Total Common Equity 62 63 Minor 64 65 Total Equity 66 67 Total Liabilities And Equity 68 69 Supplemental items 70 Total Shares out in Balance Sheet 71 72 Market Price of Stack 73 74 75 76 77 78 79 80 BI 82 83 R4 Income Statement 16450 1,373.0 1.112.0 2.5690 31540 7.7260 145290 12.1450 12.372.0 11.7340 3010 5010 3010 3020 $0820 345.00 35261 54173 Balance Sheet Cash Flow 13 Cash Flow B D E Restated 12 months Jul-30-2017 USO Restated 12 months Jul-29-2018 USD Restated 12 months Jul-28-2019 USD Restated 12 months Aug-02-2020 USD 12 months Aug-01-2021 USD 3870 1920 1.0 193.0 2010 2500 200 7790 211.0 3150 180 363.0 1.5280 2850 430 3280 1.0020 2750 120 3170 320 ITO 10 100 1160 610 9140 000) (975) 400 90 510 210 540 For the Fiscal Period Ending 14 15 Currency 16 17 Net Income 18 Depreciation & Amort 19 Amort of Goodwiland tangibles 20 Depreciation & Amort. Total 21 22 (Can) Loss From Sale Of Assets 23 (Gan) Loss On Sale Of invest 24 Asset Witdown & Restructurng Costs 25 Stock Based Compensation 26 Net Cash From Discontinued Ops 27 Other Operating Activities 28 Change in Ace Receivable 29 Change in inventories 30 Change in Ace Payable 31 Change in Other Net Operating Assets 32 Cash from Ops 33 34 Capital Expenditure 35 Cash Acquisitions 36 Divestres 37 viestin Marketable & Equity Securt 38 Net Inc.) Decin Loans Originated Sold 39 Other Investing Activities 40 Cash from Investing 41 42 Short Term Debt issued 43 Long-Term Debt issued 44 Total Debt Issued 45 Short Term Debt Repaid 45 Long Term Debt Repad 47 Total Debt Renaid Income Statement Balance Sheet 10 800 2850 (2000) 280 200 (480) (220 1.238.0 ATO 580 3170 770 (11) 360 1250 (10) 1.250.0 (840) 780 270 1.410,0 2040 (300) (20.09 1450 30 1.3960 (910) (200) 107 (1640) 200 1.0350 3380) (4070) 87810) 100 3840) (470) 310 (299) (110) 25030 300 2750 29 1110 (300) (3680) (1902 (7.1970) 5530 1530 40 2.2720 90 1158.0) 5.8390 3200 8 2470 2110 8,458.0 18.0020) (4900 ER 492 AN 107220 02240 16.4450 (9.9440) 620 11800701 5,8390 (5.2460) 7000 16.99 5,6170 10000 6,6170 0909.) 6.268 177 1 320.0 (500D 99102 ti Cash Flow B D (3380) (407) (6,7810) 100 (3640) (470) 510 (2900) (110) 25480 300 (2750) (20) 1110 (200) (3680) (190) 17.197,0) 6530 1530 40 2,2720 80 (1580) 58300 320,0 8,2470 2110 8.4580 (8.0020) 4200) (8,492.0) 10,2220 6,224 0 16,446,0 0,9440) (630) (10,0070) 5,839,0 16,2060) (1020) 15.9980) 5,6170 10000 5,6170 (6,0000) 12.2680) (9.1770) 3200 (5000) (921) (1.501,0) A 33 34 Capital Expenditure 35 Cash Acquisitions 36 Divestres 37 Invest in Marketable & Equity Securt 38 Net (inc ) Dec in Loans Orginated/Sold 39 Other investing Activities 40 Cash from Investing 41 42 Short Term Debt issued 43 Long Term Debt issued 44 Total Debt Issued 45 Short Term Debt Repaid 46 Long-Term Debt Repaid 47 Total Debt Repaid 48 49 Issuance of Common Stock 50 Repurchase of Common Stock 51 52 Common Dividends Paid 53 Total Dividends Paid 54 55 Special Dividend Pard 56 Other Financing Activities 57 Cash from Financing 58 59 Foreign Exchange Rate Ad 60 Net Change in Cash 61 62 63 64 65 66 67 68 59 Income Statement Balance Sheet 2.0 (4590) 230 (1090) (80) (120) 20 (510) (4200) (420,0) (4280) (4260) (4330) (423.0) (4280) (4260) (4190) (439.0) 30 (908.0) 1970) 5,8070 (10) 11,691.0) (120) (2.987.0) (1,669.0) 110 (29.03 (80) 120 (20) (1950) (10) 5800 20 1790 0 Cash Flow Net Present Value and Discounted Payback Period Using the amount of capital expenditures incurred in 2021 from 2b above (which is considered to be an initial investment outflow), assume the company will generate operating cash inflows of $15 million the first year, $28 million the second year, $58 million the third year, $72 million the fourth year, $85 million the fifth year, and $55 million the sixth year. a.) What is the NPV using the company's WACC calculated in 2a above as the discount rate and what is the Internal Rate of Return? b.) Did the company make a good investment decision using the NPV criteria? c.) If the company had a discounted payback period policy of four years, did it make a sound investment decision (use the company's calculated WACC for the discount rate)? a 3 Income Statement D For the Fiscal Period Ending 14 Reclassified 12 months Jul 30-2017 USD 15 Currency Reclassified 12 months Jul 29, 2018 USD 12 months Jul-28-2019 USD 12 months Aug-02-2020 USD 12 months Aug-01-2021 USD 56370 0.0150 8.1070 3,091 84700 5,837,0 6,6160 0,1070 8,691.0 3,476.0 33910 2,4460 41540 2461.0 5390 2.7110 5683 0 3,000.0 56820 20140 1,090 0 930 11770 910 130 BBD 15190 920 13800 840 (2400) (2110 1230 1000 (2060) 9430 1,057.0 1,6940 1,717,0 1,204.0 16 17 Reven 18 Other Revenue 19 Total Revenue 20 21 Cost of Goods Sold 22 Gross Profit 23 24 Seting General & Admin Exp 25 R&DE 26 Depreciation & Amort 27 Other Operating Expense Income) 28 29 Other Operating Exp. Total 30 31 Operating Income 32 33 Interest Expense 34 interest and rest income 35 Net Interest Exp. 36 37 Currency Exchange Gains (los) 38 Other Non-Operating Inc. (Exp) 39 EBTExcl. Unusual Items 40 41 Restructuring Changes 42 Merger & Related Retract Charges 43 maitment of Goodwill 44 Gain (Loss) On Sale or lives 45 Giornale Accole Income Statement Balance Sheet 1,5030 1,404.0 1,1170 1,2910 1,810.0 (1150) (1830) 30 (1800) 3.500) 20 (3540) (3450) 40 (3410) (2100) 10 (209.01 11150) (150) 10 (20) (10) 1,373.0 1,225.0 7630 9480 1.400.0 (480) (1210) (2020) (1070) (890) 53:09 190) (100) (10) (490) 4 m TO 111 01 Cash Flow B 0 D E E F (150) TO (20) (10) 1,373.0 1,225.0 763.0 948.0 1,400,0 (480) 2020) (1070) (1210) (690) (530) (90) (100) (10) (490) (540) (540) (110) (160) (220) 1,3160 830.0 525.0 7660 1,336 0 3920 924.0 1060 724.0 86 B7 Currency Exchange Gains (Loss) 38 Other Non-Operating inc (Exp 39 EBT Excl Unusual Items 40 41 Restructuring Charges 42 Merger & Related Result Charges 13 Impairment of Goodwill 44 Gain (Loss) On Sale Of Invest 45 Gain (Loss) On Sale Of Assets 46 Assel Whitedown 47 Legal Settlements 48 Other Unusual 49 EBT Incl. Unusual Items 50 51 Income Tax Expense 52 Earnings from Cont Ops 53 > 54 Earrings of Discontinued Ops 55 Extraordter & Account Change 56 Net Income to Company 57 58 Minonty int in Earnings 59 Net Income 60 61 62 63 64 65 66 67 6B 69 70 Income Statement Balance Sheet 1510 474.0 1740 5920 3200 1,008.0 7) (4630) (2630) 10360 (80) 8870 251.0 2110 1,6280 1,0020 8870 2610 211.0 16280 1.0020 Cash Flow D Jul-30-2017 USD Reclassified Jul-29-2018 USD Jul-28-2019 USD Aug-02-2020 USO Aug-01-2021 USD 3190 319,0 490 49.0 310 31.0 6500 859.0 090 690 5100 5050 5500 560 6050 530 6300 150 5750 5440 510 5950 563.0 6740 > > 9020 740 1.8000 8810 7970 2.296,0 3830 499.0 1.9670 8710 800 2.385.0 9330 90 1.695.0 13 Balance Sheet Balance Sheet as of: 14 15 Currency 16 ASSETS 17 Cash And Equivalents 18 Total Cash & ST Investments 19 20 Accounts Receivable 21 Other Recewables 22 Total Receivables 23 24 Inventory 25 Other Current Assets 26 Total Current Assets 22 28 Gross Property, Plant & Equipment 29 Accurred Depreciation 30 Net Property. Plant & Equipment 31 32 Long-term Investments 33 Goodwill 34 Other intangibles 35 Deferred Tax Assets LT 36 Other Long Term Assets 37 Total Assets 38 39 LIABILITIES 40 Accounts Payable 41 Accrued Exp 42 Short term Borrowings 43 Curr Port of LT Debt 44 Curr Port of Leases 45 Cur Income Taxes Payable 46 Other Current Liabilities 47 Total Current Liabilities 45 Income Statement 50430 5890 2.454.0 52390 BAUTO) 24660 52150 2.7000) 2.455.0 5,5390 20170) 2.622.0 5,7240 1190) 2.6050 770 40170 34150 090 2 1150 1,1180 300 340 7.725.0 320 38540 30540 20 241850 14.529.0 3.000 33500 39810 3.2300 12170 13.1430 290 12.372.0 2140 11.734. 1050 MO 1.1350 3900 1,0700 5130 370 3000 1940 1000 220 10 200 1560 2395.0 8140 5720 8500 5000 210 150 6130 3,385.0 10490 6010 278 0 9210 700 200 1300 3,075.0 100 8000 30940 650 50 1240 1814.0 Balance Sheet Cash Flow B D E F 79910 24920 70 SOBO 4900 1850 6.0810 3470 9000 2040 13,1560 7.101 20 3830 5940 2150 12.036.0 4.0000 1000 1620 9140 1740 9.8030 3.0020 1880 1410 10510 IMO 5800 120 500 21850 (1.000) (20) 1.6370 120 3400 22240 (1.1030 (1180) 13640 120 3720 19000 (1070) 1980) 1.100 120 3040 300 11.02:30) 1100) 2.5630 120 4140 3.00 (1021) 50 3.1520 80 90 90 60 20 48 49 Long Term Dett So Long-Term Leases 51 Pension & Other Post Retre Benefits 52 Del Tax Labaty. Non-Cut 53 otherhon Currentes 54 Total Liabilities 55 56 Common Stock 57 AddoPad Capa 58 Red wings 59 Treasury Stock 60 Comprehensive and Other 61 Total Common Equity 62 63 Minor 64 65 Total Equity 66 67 Total Liabilities And Equity 68 69 Supplemental items 70 Total Shares out in Balance Sheet 71 72 Market Price of Stack 73 74 75 76 77 78 79 80 BI 82 83 R4 Income Statement 16450 1,373.0 1.112.0 2.5690 31540 7.7260 145290 12.1450 12.372.0 11.7340 3010 5010 3010 3020 $0820 345.00 35261 54173 Balance Sheet Cash Flow 13 Cash Flow B D E Restated 12 months Jul-30-2017 USO Restated 12 months Jul-29-2018 USD Restated 12 months Jul-28-2019 USD Restated 12 months Aug-02-2020 USD 12 months Aug-01-2021 USD 3870 1920 1.0 193.0 2010 2500 200 7790 211.0 3150 180 363.0 1.5280 2850 430 3280 1.0020 2750 120 3170 320 ITO 10 100 1160 610 9140 000) (975) 400 90 510 210 540 For the Fiscal Period Ending 14 15 Currency 16 17 Net Income 18 Depreciation & Amort 19 Amort of Goodwiland tangibles 20 Depreciation & Amort. Total 21 22 (Can) Loss From Sale Of Assets 23 (Gan) Loss On Sale Of invest 24 Asset Witdown & Restructurng Costs 25 Stock Based Compensation 26 Net Cash From Discontinued Ops 27 Other Operating Activities 28 Change in Ace Receivable 29 Change in inventories 30 Change in Ace Payable 31 Change in Other Net Operating Assets 32 Cash from Ops 33 34 Capital Expenditure 35 Cash Acquisitions 36 Divestres 37 viestin Marketable & Equity Securt 38 Net Inc.) Decin Loans Originated Sold 39 Other Investing Activities 40 Cash from Investing 41 42 Short Term Debt issued 43 Long-Term Debt issued 44 Total Debt Issued 45 Short Term Debt Repaid 45 Long Term Debt Repad 47 Total Debt Renaid Income Statement Balance Sheet 10 800 2850 (2000) 280 200 (480) (220 1.238.0 ATO 580 3170 770 (11) 360 1250 (10) 1.250.0 (840) 780 270 1.410,0 2040 (300) (20.09 1450 30 1.3960 (910) (200) 107 (1640) 200 1.0350 3380) (4070) 87810) 100 3840) (470) 310 (299) (110) 25030 300 2750 29 1110 (300) (3680) (1902 (7.1970) 5530 1530 40 2.2720 90 1158.0) 5.8390 3200 8 2470 2110 8,458.0 18.0020) (4900 ER 492 AN 107220 02240 16.4450 (9.9440) 620 11800701 5,8390 (5.2460) 7000 16.99 5,6170 10000 6,6170 0909.) 6.268 177 1 320.0 (500D 99102 ti Cash Flow B D (3380) (407) (6,7810) 100 (3640) (470) 510 (2900) (110) 25480 300 (2750) (20) 1110 (200) (3680) (190) 17.197,0) 6530 1530 40 2,2720 80 (1580) 58300 320,0 8,2470 2110 8.4580 (8.0020) 4200) (8,492.0) 10,2220 6,224 0 16,446,0 0,9440) (630) (10,0070) 5,839,0 16,2060) (1020) 15.9980) 5,6170 10000 5,6170 (6,0000) 12.2680) (9.1770) 3200 (5000) (921) (1.501,0) A 33 34 Capital Expenditure 35 Cash Acquisitions 36 Divestres 37 Invest in Marketable & Equity Securt 38 Net (inc ) Dec in Loans Orginated/Sold 39 Other investing Activities 40 Cash from Investing 41 42 Short Term Debt issued 43 Long Term Debt issued 44 Total Debt Issued 45 Short Term Debt Repaid 46 Long-Term Debt Repaid 47 Total Debt Repaid 48 49 Issuance of Common Stock 50 Repurchase of Common Stock 51 52 Common Dividends Paid 53 Total Dividends Paid 54 55 Special Dividend Pard 56 Other Financing Activities 57 Cash from Financing 58 59 Foreign Exchange Rate Ad 60 Net Change in Cash 61 62 63 64 65 66 67 68 59 Income Statement Balance Sheet 2.0 (4590) 230 (1090) (80) (120) 20 (510) (4200) (420,0) (4280) (4260) (4330) (423.0) (4280) (4260) (4190) (439.0) 30 (908.0) 1970) 5,8070 (10) 11,691.0) (120) (2.987.0) (1,669.0) 110 (29.03 (80) 120 (20) (1950) (10) 5800 20 1790 0 Cash Flow
