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s. New Car Development Cost $12,000,000 Marketing Cost $250,000 New Car Variable Cost per car $49,600 New Car Fixed Costs per Year $35,000,000 New Car

s.

New Car Development Cost

$12,000,000

Marketing Cost

$250,000

New Car Variable Cost per car

$49,600

New Car Fixed Costs per Year

$35,000,000

New Car Sales Volume Year 1

5,750

New Car Sales Volume Year 2

6,437

New Car Sales Volume Year 3

4,744

New Car Sales Volume Year 4

3,325

New Car Sales Volume Year 5

2,723

New Car Unit Price

$80,000

New Car Equipment

450,000,000

New Car Equipment Depreciation

7 Year MACRS Schedule

Value of Equipment after 5 Years

355,000,000

Existing Car Sales Volume if New Car is not introduced Year 1

12,000

Existing Car Sales Volume if New Car is not introduced Year 2

10,750

Existing Car Sales Volume if New Car is not introduced Year 3

8,700

Price of Existing Car

$35,000

Variable Cost per Existing Car

$19,950

Fixed Cost of Existing Cost Per Year

$25,000,000

Sales Volume of Existing Car if New Car is introduced Year 1

11,000

Sales Volume of Existing Car if New Car is introduced Year 2

9,750

Sales Volume of Existing Car if New Car is introduced Year 3

7,700

Existing Car Unit Price if New Car is introduced

$32,000

New Working Capital of the Project, changes occur in Year 1

20% of Sales

Corporate Tax Rate

25%

Cost of Capital

14%

New Car Development Cost

$12,000,000

Marketing Cost

$250,000

New Car Variable Cost per car

$49,600

New Car Fixed Costs per Year

$35,000,000

New Car Sales Volume Year 1

5,750

New Car Sales Volume Year 2

6,437

New Car Sales Volume Year 3

4,744

New Car Sales Volume Year 4

3,325

New Car Sales Volume Year 5

2,723

New Car Unit Price

$80,000

New Car Equipment

450,000,000

New Car Equipment Depreciation

7 Year MACRS Schedule

Value of Equipment after 5 Years

355,000,000

Existing Car Sales Volume if New Car is not introduced Year 1

12,000

Existing Car Sales Volume if New Car is not introduced Year 2

10,750

Existing Car Sales Volume if New Car is not introduced Year 3

8,700

Price of Existing Car

$35,000

Variable Cost per Existing Car

$19,950

Fixed Cost of Existing Cost Per Year

$25,000,000

Sales Volume of Existing Car if New Car is introduced Year 1

11,000

Sales Volume of Existing Car if New Car is introduced Year 2

9,750

Sales Volume of Existing Car if New Car is introduced Year 3

7,700

Existing Car Unit Price if New Car is introduced

$32,000

New Working Capital of the Project, changes occur in Year 1

20% of Sales

Corporate Tax Rate

25%

Cost of Capital

14%

New Car Development Cost

$12,000,000

Marketing Cost

$250,000

New Car Variable Cost per car

$49,600

New Car Fixed Costs per Year

$35,000,000

New Car Sales Volume Year 1

5,750

New Car Sales Volume Year 2

6,437

New Car Sales Volume Year 3

4,744

New Car Sales Volume Year 4

3,325

New Car Sales Volume Year 5

2,723

New Car Unit Price

$80,000

New Car Equipment

450,000,000

New Car Equipment Depreciation

7 Year MACRS Schedule

Value of Equipment after 5 Years

355,000,000

Existing Car Sales Volume if New Car is not introduced Year 1

12,000

Existing Car Sales Volume if New Car is not introduced Year 2

10,750

Existing Car Sales Volume if New Car is not introduced Year 3

8,700

Price of Existing Car

$35,000

Variable Cost per Existing Car

$19,950

Fixed Cost of Existing Cost Per Year

$25,000,000

Sales Volume of Existing Car if New Car is introduced Year 1

11,000

Sales Volume of Existing Car if New Car is introduced Year 2

9,750

Sales Volume of Existing Car if New Car is introduced Year 3

7,700

Existing Car Unit Price if New Car is introduced

$32,000

New Working Capital of the Project, changes occur in Year 1

20% of Sales

Corporate Tax Rate

25%

Cost of Capital

14%

Can you and your team prepare the income statement table, the operating cash flow (OCF) table, and the total cash flow from assets (CFFA) table for this project?

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