FM Lab Week 8

Download as xlsx, pdf, or txt
Download as xlsx, pdf, or txt
You are on page 1of 2

Input Data

equipment cost 10,000,000


net operating working capital/ sales 10%
final year sales (units) 1000
Sales price per unit 24000
Variable cost per unit 17500
nonvariable costs 1000000
tax rates 40%
Wacc cost of capital 10%
inflation in prices and cost 3%
Estimated salvage value at year 4 500,000

INTERMEDIATE CALCULATION
0 1 2
Units sold 1,000.00 1,000.00
Sales per unit 24,000.00 24,720.00
Variable cost per unit 17,500.00 18,025.00
Non-variable cost 1,000,000.00 1,030,000.00
Sales Revenue 24,000,000.00 24,720,000.00
MACRs
1 20%
2 32%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
100%

3 4
1,000.00 1,000.00
25,461.60 26,225.45
18,565.75 19,122.72
1,060,900.00 1,092,727.00
25,461,600.00 26,225,448.00

You might also like