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Final Project Fm-1

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6 views12 pages

Final Project Fm-1

Uploaded by

mrbangash79
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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ABC & COMPANY

INCOME SATATEMENT
FOR THE YEAR ENDED DECEMBER , 31,2019

NET SALES 856000


COST OF GOOD SOLD 540000
GROSS PROFIT 316000
OPERATING EXPENSES 440000
NET LOSS -124000
ABC & COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER , 31,2020

NET SALES 1500000


COST OF GOOD SOLD 800000
GROSS PROFIT 700000
OPERATING EXPENSES 440000
NET INCOME 260000
ABC & COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER , 31,2021

NET SALES 1700000


COST OF GOOD SOLD 800000
GROSS PROFIT 900000
OPERATING EXPENSES 460000
NET INCOME 440000
ABC & COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER , 31,2022

NET SALES 1800000


COST OF GOOD SOLD 850000
GROSS PROFIT 950000
OPERATING EXPENSES 480000
NET INCOME 470000
ABC & COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER , 31,2023

NET SALES 2000000


COST OF GOOD SOLD 1000000
GROSS PROFIT 1000000
OPERATING EXPENSES 500000
NET INCOME 500000
CAPITAL BUDJETING
NPV

S# CASH FLOW ACCUMULATED CASH FLOW DISCOUNTED CASH FLOW @ 10%


0 (2,000,000) (2,000,000) (2,000,000)
1 316,000 (1,684,000) 287,273
2 700,000 (984,000) 578,512
3 900,000 (184,000) 616,183
4 950,000 866,000 648,862
5 1,000,000 1,866,000 620,921
2,751,751

PAYBACK PERIOD 3
NPV CASH INFLOW -CASH OUTFLOW
751,751
PI SUM OF CASH INFLOW / SUM OF CASHOUTFLOW
1.3758755

INTERNAL RATE OF RETURN (IRR)

S# CASH INFLOW DISCOUNTED CASH FLOW @ 15%


0 (2,000,000) (2,000,000)
1 316,000 274782
2 700,000 529300
3 900,000 591764
4 950,000 543165
5 1,000,000 497176
436,187
IRR L%+(+VENPV/+VENPV-(-NPV)*(H%-L%)
IRR 11.80%

MODIFIED INTERNAL RATE OF RETURN

S# CASH INFLOW FUTURE VALUE OF CASH FLOW @ 18%


0 (2,000,000) -2000000
1 316,000 612653
2 700,000 1150122
3 900,000 1253160
4 950,000 1121000
5 1,000,000 1000000
5136935

MIRR 20.76%
CASHFLOW ESTIMATION
INITIAL CASH FLOW
COST (2,000,000)
ADD: NET OPERATING WORKING CAPITAL (100,000)
INITIAL CASH FLOW (2,100,000)

OPERATING CASH FLOW


YEARS 1 2 3 4 5
SALES 400,000 1,500,000 1,700,000 1,800,000 200,000
LESS: OPERATING COST 440000 440000 460000 480000 50000
EBT (40,000) 1,060,000 1,240,000 1,320,000 150,000
LESS: TAX RATE 40% 16000 -424000 -496000 -528000 -60000
EAT (24,000) 636,000 744,000 792,000 90,000

TERMINAL CASH FLOW


SALE PROCEED 2000000
ADD: N.O.W.C 100000
TERMINAL CASH FLOW 2100000

NPV
YEARS CASH FLOW DISCOUNTING @10%
0 -2000000 -2000000
1 -24000 -218182
2 636000 525620
3 744000 558978
4 792000 540947
5 2190000 1359817
2767180
NPV CASH INFLOW -CASH OUT FLOW
NPV 767180
WACC
BETA U 1.5
M.R 8%
R.F.R 5%
TAX RATE 40%
COST OF EQITY 10%
Ke 5%+(8%-5%)(1.5)
Ke 9%

WACC 1500000/1500000*9.5%
WACC 9.50%

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