Question: Shop the hosp.do in-house printing-what is 5 year cashflow analysis with discount rate?

(2021) spends about $830,000 a year on commercial contract printing, $132,000 represents graphics printing, Most of the graphics printing (about $119,000) could be moved in-house, but about 10%. about 50 percent of the almost $700,000 in forms print-ing, or just under $350,000 could be moved in-house-increased in dollar volume by about 5 percent (2 percent volume increase and 3 percent price increase) from 2020 to 2021, and this trend is expected to continue .he print shop bills for materials only, but because material costs represent, on average, 30 percent of commercial ven-dors total billings, the shop currently does about $42,837/0.30 = $142,790 in annual -Current equip value=$650,000 with depreciation annual for tax-$40,000. new equipment would also generate tax depreciation of about $25,000 per year, and the required delivery van would cost $2,000 a year to operate (in 2021. Lease space to grow would be annual lease cost by $35,000 $20,000 = $15,000. (Assume that lease payments occur at the beginning of each year.)Remdel cost-$30,000 initial. utilities cost

lease payments are not affected by inflation, which is expected to average about 3 percent per year. The expanded print shop would require an increase in labor costs of $98,400; Current labor=$50,000. Municiple debt cost 5.5% capital structure consists of 60 percent debt and 40 percent equity cost of equity of 13.0 percent. Mortgage rate 7.5% combined federal-plus-state tax rate of PROPERTIES is 30 percent. Because PROPERTIES competes with other property development companies, its inherent business risk is high, and hence it has a relatively high cost of equity of 17 percent. However, its ability to use real estate as collateral for its debt financing gives it a relatively high debt capacityabout 75% average printer in the United States has a profit margin of 5.5 percent, while the average in the Chicago metropolitan area is barely 4 percent. Return on assets in the industry is 7.5 percent nationwide and 5.2 percent locally 2022 com-mercial sales could bring in as much as $80,000 in pretax profits (in 2022 dollars). This amount could increase to $100,000 in 2023 (in 2023 dollars), external business are expected to increase by 5 percent per year after 2023, including both volume growth and price inflation. Note that the pretax profit amounts include all costs related to the external printing business except marketing costs, which are estimated to be $6,000 in 2022 and are expected to increase at the 3 percent inflation rate. external business are expected to increase by 5 percent per year after 2023, including both volume growth and price inflation. Note that the pretax profit amounts include all costs related to the external printing business except marketing costs, which are estimated to be $6,000 in 2022 and are expected to increase at the 3 percent inflation rate. external business are expected to increase by 5 percent per year after 2023, including both volume growth and price inflation. Note that the pretax profit amounts include all costs related to the external printing business except marketing costs, which are estimated to be $6,000 in 2022 and are expected to increase at the 3 percent inflation rate. external business are expected to increase by 5 percent per year after 2023, including both volume growth and price inflation. Note that the pretax profit amounts include all costs related to the external printing business except marketing costs, which are estimated to be $6,000 in 2022 and are expected to increase at the 3 percent inflation rate. external business are expected to increase by 5 percent per year after 2023, including both volume growth and price inflation. Note that the pretax profit amounts include all costs related to the external printing business except marketing costs, which are estimated to be $6,000 in 2022 and are expected to increase at the 3 percent inflation rate external business are expected to increase by 5 percent per year after 2023, including both volume growth and price inflation. Note that the pretax profit amounts include all costs related to the external printing business except marketing costs, which are estimated to be $6,000 in 2022 and are expected to increase at the 3 percent inflation rate