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Petaluma- Find Annual After Tax Cash Flow, and remaining Calcs Please show how to calculate in Excel Old Situation New Situation Chickens per Year 500,000
| Petaluma- Find Annual After Tax Cash Flow, and remaining Calcs Please show how to calculate in Excel | |||||||
| Old Situation | New Situation | ||||||
| Chickens per Year | 500,000 | 500,000 | |||||
| Cost per Chicken | $3.00 | $4.00 | |||||
| Shipping Cost per Chicken | $1.00 | $ 0.75 | |||||
| Selling Price | $6.50 | $8.50 | |||||
| Total Cost per Chicken | $4.00 | $4.75 | Add cost and shipping | ||||
| Additional Gross Profit per Chicken | $1.25 | Subtract old price minus old cost from new price minus new cost | |||||
| Investment in Additional Chickens | $15,000 | One time investment in increased inventory | |||||
| Land Cost | $150,000 | ||||||
| Buildings Cost | $300,000 | ||||||
| Labor Expense | $130,000 | ||||||
| Depreciation Salvage Value (Buildings) | $100,000 | ||||||
| Annual Depreciation Expense | $ 40,000.00 | Cost - salvage value divided by years | |||||
| Actual Salvage Value (Land) | $200,000 | ||||||
| Actual Salvage Value (Buildings) | $100,000 | ||||||
| Life of Project | 5.00 | ||||||
| Tax Rate | 35% | ||||||
| Weighted Average Cost of Capital | 5% | ||||||
| Cash Flow | |||||||
| Initial Outlay | $465,000 | Cost of land, buildings and increase in inventory | |||||
| Annual After-tax Cash Flow | Chickens per year times additional profit minus labor + depreciation. | ||||||
| Then multiply by 1-tax rate to get after tax net income then add back depreciation as it's not cash | |||||||
| Terminal Cash Flow | $47,500 | Sell off land, buildings and inventory while accounting for taxes | |||||
| Land Cost | $150,000 | ||||||
| Land Salvage Value | $200,000 | ||||||
| Tax | $17,500 | ||||||
| Gain on Sale | $32,500 | ||||||
| Building Salvage Value | $100,000 | ||||||
| Depreciation Building | ($100,000) | ||||||
| Tax | $0 | ||||||
| Gain on Sale | $0 | ||||||
| Salvage Value Inventory | $15,000 | ||||||
| So actual salvage value building minus any taxes due on the difference of the actual salvage value and the depreciated salvage value. | |||||||
| Plus the actual salvage value on the land minus any taxes due on the difference of the actual salvage value and the land cost | |||||||
| Plus selling off the increased inventory (sold at same price as bought) | |||||||
| Period | Cash Flow | PV Factor @ 5% | Present Value | Initial outlay from above | |||
| 0 | ($465,000) | After tax CF from above | |||||
| 1 | Calc | After tax CF from above | |||||
| 2 | Calc | After tax CF from above | |||||
| 3 | Calc | After tax CF from above | |||||
| 4 | Calc | After tax CF from above | |||||
| 5 | Calc | After tax CF from above plus the terminal cash flow from above | |||||
| Profitability Measures | |||||||
| Payback Period | #DIV/0! | ||||||
| Discounted Payback | Calc | ||||||
| NPV | Calc | Use NPV calculation in excel just use =NPV and fill it out | |||||
| Profitability Index | Calc | NPV divided by initial cash outlay plus 1 | NPV+Initial Outlay/Initial Outlay | ||||
| IRR | Calc | Use IRR calculation in excel just use =IRR and fill it out | |||||
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