Sneaker 2013 Projected Cash Flow S

2012 2013
New Factory (CAPEX) $ -
Equipment (plus Freight & Installation) $ -
Revenues $ -
Cannibalization (Erosion) $ -
Net Revenues (after Erosion) $ -
Variable Costs $ -
S G & A Expenses $ -
Endorsement $ -
Other Ad & Promotion $ -
Factory Dep (39 yr MACRS) $ -
Equipment (plus Freight & Installation) Dep (5 Y MACRS $ -
EBIT $ -
Taxes $ -
Earnings Bef Int After Taxes $ -
Add back Fac Dep $ -
Add back Equip, Fr, Instl Dep $ -
Operating Cash Flows $ -
Change in NWC $ - $ -

New Factory (CAPEX) $ -

Equipment (plus Freight & Installation) $ -
Operating Cash Flows 0 0
Change in NWC $ - $ -
Project NET CASH FLOWS $ - $ -

Criteria Use Excel Fn Decision

NPV $ - The project is expected to result in a net loss f
IRR Err:523 The IRR is lower than the cost of capital, the ru

NWC 100 120

Change in NWC -100 -20
aker 2013 Projected Cash Flow Statements
2014 2015 2016 2017

$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
 0 0 0 0
$ - $ - $ - $ -
$ - $ - $ - $ -

s expected to result in a net loss for the company. As a result, and according to the rule, the company should not pursue the project.
wer than the cost of capital, the rule declares that the best course of action is to forego the project or investment.

169 300 250 159

-49 -131 50 91
 CA - CL
Cash
A/P

After Tax SV of Factory

After Tax SV of Equip, Fr, Inst)

2018
$ 106,140,000.00 Terminal val = After Tax SV of Factory
$ 1,800,000.00 Terminal val = After Tax SV of Equip, Fr, Inst)
$ -
$ -
$ -
$ -
$ -
$ - Y0
$ - BV Factory $ -
$ -
$ - Y0
$ - BV Equipment, Fr, Inst $ -
$ -
$ -
$ - Y0
$ - A/R
$ - Inventory $ -
$ - A/P $ -
NWC (CA - CL) $ -
Change in NWC - Cash Impact (Spending) $ -
$ -
 $ -
0
$ -
$ -

the company should not pursue the project.

he project or investment.

159 0
Equity

A/R Inv

$ 106,140,000.00 SV - (SV-BV)*Tc
$ 1,800,000.00 SV - (SV-BV)*Tc

39 Yr MACRS Dep %
Yr 1 Yr 2 Yr 3 Yr 4
2.60% 5.00% 4.70% 4.50%
5 Yr MACRS Dep %
Yr 1 Yr 2 Yr 3 Yr 4
20% 32% 19.20% 11.52%

Yr 1 Yr 2 Yr 3 Yr 4
$ - $ - $ - $ -

Yr 1 Yr 2 Yr 3 Yr 4
$ - $ - $ - $ -

Calculation of Change in NWC

Yr 1 Yr 2 Yr 3 Yr 4
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
$ - $ - $ - $ -
 Yr 5 Yr 6
4.30% 4.00%

Yr 5 Yr 6
11.52% 5.76%

Yr 5 Yr 6
$ - $ -

Yr 5 Yr 6
$ - $ -

Yr 5 Yr 6
$ - $ -
$ - $ -
$ - $ -
$ - $ - Sum of Change in NWC
$ - $ - $ - Should add up to zero (Formula is inputed)
d up to zero (Formula is inputed)