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Use Scenario Manager to generate a Scenario Summary report that gives Total Discounted Cash Flow for the following scenarios. Scenario 1 2 3 4 Tax
Use Scenario Manager to generate a Scenario Summary report that gives Total Discounted Cash Flow for the following scenarios.
Scenario 1 2 3 4
Tax Rate 32% 27% 31% 21%
Inflation Rate 1% 4% 2% 3%
Annual Growth of Sales 24% 14% 9% 11%
What is the range of values for the Total Discounted Cash Flow (in dollars) for these scenarios? (Round your answer to the nearest dollar.)
Goal Kick Sports New Store Financial Model | ||||||
Parameters | ||||||
Store Size (square feet) | 7,500 | |||||
Total Fixed Assets | $ 280,000 | |||||
Straight Line Depreciation period | 5 | |||||
Discount Rate | 10% | |||||
Tax Rate | 33% | |||||
Inflation Rate | 2% | |||||
Cost of Merchandise (% of sales) | 28% | |||||
First Year Sales Revenue | $ 950,000 | |||||
Annual Growth Rate of Sales | 15% | |||||
Operating Expenses | ||||||
Rent Per Square Foot | $ 30 | |||||
Labor Cost | $ 150,000 | |||||
Other Expenses | $ 235,000 | |||||
Model | ||||||
Year | 1 | 2 | 3 | 4 | 5 | |
Sales Revenue | $950,000 | $1,092,500 | $1,256,375 | $1,444,831 | $1,661,556 | |
Cost of Merchandise | $266,000 | $305,900 | $351,785 | $404,553 | $465,236 | |
Labor Cost | $150,000 | $153,000 | $156,060 | $159,181 | $162,365 | |
Rent | $225,000 | $229,500 | $234,090 | $238,772 | $243,547 | |
Other Expenses | $235,000 | $239,700 | $244,494 | $249,384 | $254,372 | |
Net Operating Income | $74,000 | $164,400 | $269,946 | $392,942 | $536,037 | |
Depreciation Expense | $56,000 | $56,000 | $56,000 | $56,000 | $56,000 | |
Net Income Before Tax | $18,000 | $108,400 | $213,946 | $336,942 | $480,037 | |
Income Tax | $5,940 | $35,772 | $70,602 | $111,191 | $158,412 | |
Net After Tax Income | $12,060 | $72,628 | $143,344 | $225,751 | $321,625 | |
Plus Depreciation Expense | $56,000 | $56,000 | $56,000 | $56,000 | $56,000 | |
Annual Cash Flow | $68,060 | $128,628 | $199,344 | $281,751 | $377,625 | |
Discounted Cash Flow | $61,873 | $106,304 | $149,770 | $192,440 | $234,475 | |
Total Discounted Cash Flow | $744,862 |
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