Question
Option 1 NPV Years 0.00 1.00 2.00 3.00 4.00 5.00 Sales - 5,000.00 4,400.00 4,000.00 3,600.00 3,400.00 Price - 44,000.00 44,000.00 39,000.00 39,000.00 36,000.00 Revenue(I)
Option 1 NPV
Years 0.00 1.00 2.00 3.00 4.00 5.00
Sales - 5,000.00 4,400.00 4,000.00 3,600.00 3,400.00
Price - 44,000.00 44,000.00 39,000.00 39,000.00 36,000.00
Revenue(I) - 220,000,000.00 193,600,000.00 156,000,000.00 140,400,000.00 122,400,000.00
Variable costs (II) - 140,000,000.00 123,200,000.00 112,000,000.00 100,800,000.00 95,200,000.00
contribution(I-II): (III) - 360,000,000.00 316,800,000.00 268,000,000.00 241,200,000.00 217,600,000.00
Fixed costs (IV) - 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00
Marketing costs (V) - 2,100,000.00 2,100,000.00 2,100,000.00 2,100,000.00 2,100,000.00
Rent income forgone (VI) - 3,500,000.00 3,500,000.00 3,500,000.00 3,500,000.00 3,500,000.00
Equipment cost(IX) 93,000,000.00 - - - - -
Salvage value of equipment(X) - - - - - 43,000,000.00
Accounts receivables (VII) - 77,000,000.00 67,760,000.00 54,600,000.00 49,140,000.00 42,840,000.00
Accounts payable (VIII) - 44,130,000.00 39,090,000.00 35,730,000.00 32,370,000.00 30,690,000.00
Net working capital(VII-VIII) - 121,130,000.00 106,850,000.00 90,330,000.00 81,510,000.00 73,530,000.00
Depreciation(10% * IX) - 9,300,000.00 9,300,000.00 9,300,000.00 9,300,000.00 9,300,000.00
How to calculate EBIT ?
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
