This document presents pro-forma costs and profits projections for a new thin-slab casting facility from 1987 to 2000. It projects revenues, operating income, depreciation expenses, profit sharing expenses, pre-tax income, net income, capital expenditures, start-up expenses, changes in working capital, cash flows, cumulative investments, book value and net present value of cash flows. Key assumptions include provisions for working capital at 12% of revenues, a tax rate of 34%, depreciation over 15 years with maintenance at half that rate, and a weighted after-tax cost of capital of 11%.
This document presents pro-forma costs and profits projections for a new thin-slab casting facility from 1987 to 2000. It projects revenues, operating income, depreciation expenses, profit sharing expenses, pre-tax income, net income, capital expenditures, start-up expenses, changes in working capital, cash flows, cumulative investments, book value and net present value of cash flows. Key assumptions include provisions for working capital at 12% of revenues, a tax rate of 34%, depreciation over 15 years with maintenance at half that rate, and a weighted after-tax cost of capital of 11%.
This document presents pro-forma costs and profits projections for a new thin-slab casting facility from 1987 to 2000. It projects revenues, operating income, depreciation expenses, profit sharing expenses, pre-tax income, net income, capital expenditures, start-up expenses, changes in working capital, cash flows, cumulative investments, book value and net present value of cash flows. Key assumptions include provisions for working capital at 12% of revenues, a tax rate of 34%, depreciation over 15 years with maintenance at half that rate, and a weighted after-tax cost of capital of 11%.
This document presents pro-forma costs and profits projections for a new thin-slab casting facility from 1987 to 2000. It projects revenues, operating income, depreciation expenses, profit sharing expenses, pre-tax income, net income, capital expenditures, start-up expenses, changes in working capital, cash flows, cumulative investments, book value and net present value of cash flows. Key assumptions include provisions for working capital at 12% of revenues, a tax rate of 34%, depreciation over 15 years with maintenance at half that rate, and a weighted after-tax cost of capital of 11%.
Book Value $10.0 $150.0 $272.7 $277.7 $278.6 $277.4 $272.1 $264.8 $255.5 $246.1 $236.8 $227.4 $218.1 $208.7
NPV Cash Flows to 2000 ($54.8)
Cash Flow=NIAT+[Dep-Maint]-CAPEX-ChgWC-StartupExp
1) The company will need to make provisions for working capital, which are expected to amount to about 12 percent of revenues. 2) The figures above take the project through the year 2000. It is expected that there will be the need for a major modernization and/or expansion after that time. 3) Provisions for taxes are made here at the company's marginal rate of 34 percent. 4) Depreciation is calcualted based on an asset life of 15 years. It is expected that annual expenditures on major repairs and improvements will amount to approximately one-half of this figure. 5) The company's weighted after-tax cost of capital is 11%.
