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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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