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    Operating Cash Flows (A) $ 6,895,625.00 $ 8,824,750.00 $ 12,248,375.00 $ 13,087,125.00

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    Mohit
    This document presents financial projections for a company over 4 years including sales, costs, expenses, cash flows, and a net present value calculation. Sales increase each year from $12.4M to $40.3M while costs remain around 65% of sales. Expenses also rise slightly each year. Despite losses the first two years, positive cash flows occur in years 3 and 4, leading to a positive net present value of $36M when discounted at 14%.

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    Operating Cash Flows (A) $ 6,895,625.00 $ 8,824,750.00 $ 12,248,375.00 $ 13,087,125.00

    Uploaded by

    Mohit
    30 views3 pages
    This document presents financial projections for a company over 4 years including sales, costs, expenses, cash flows, and a net present value calculation. Sales increase each year from $12.4M to $40.3M while costs remain around 65% of sales. Expenses also rise slightly each year. Despite losses the first two years, positive cash flows occur in years 3 and 4, leading to a positive net present value of $36M when discounted at 14%.

    Original Description:

    CH_21042017_5

    Original Title

    CH_21042017_5

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    © © All Rights Reserved

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    This document presents financial projections for a company over 4 years including sales, costs, expenses, cash flows, and a net present value calculation. Sales increase each year from $12.4M to $40.3M while costs remain around 65% of sales. Expenses also rise slightly each year. Despite losses the first two years, positive cash flows occur in years 3 and 4, leading to a positive net present value of $36M when discounted at 14%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    30 views3 pages

    Operating Cash Flows (A) $ 6,895,625.00 $ 8,824,750.00 $ 12,248,375.00 $ 13,087,125.00

    Uploaded by

    Mohit
    This document presents financial projections for a company over 4 years including sales, costs, expenses, cash flows, and a net present value calculation. Sales increase each year from $12.4M to $40.3M while costs remain around 65% of sales. Expenses also rise slightly each year. Despite losses the first two years, positive cash flows occur in years 3 and 4, leading to a positive net present value of $36M when discounted at 14%.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Year 0 1 2 3 4

    Sales $ 13,750,000.00 $ 23,500,000.00 $ 40,250,000.00 $ 44,750,000.00


    Cost of goods sold (65% of Sales) $ 8,937,500.00 $ 15,275,000.00 $ 26,162,500.00 $ 29,087,500.00
    Selling, General and Administrative expenses $ 1,500,000.00 $ 1,750,000.00 $ 2,000,000.00 $ 2,200,000.00
    Depreciation ($50,000,000/4 years) $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00
    Income before taxes -$ 9,187,500.00 -$ 6,025,000.00 -$ 412,500.00 $ 962,500.00
    Tax expense/benefit @ 39% -$ 3,583,125.00 -$ 2,349,750.00 -$ 160,875.00 $ 375,375.00
    Income after taxes -$ 5,604,375.00 -$ 3,675,250.00 -$ 251,625.00 $ 587,125.00
    Add: Depreciation $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00
    Operating cash flows (A) $ 6,895,625.00 $ 8,824,750.00 $ 12,248,375.00 $ 13,087,125.00

    Initial capital expenditure -$ 50,000,000.00


    Investment in net working capital investment -$ 1,250,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00
    Opportunity of unused equipment -$ 25,000.00
    Non operating cash flows (B) -$ 51,275,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00

    Net cash flows (A+B) -$ 51,275,000.00 $ 6,795,625.00 $ 8,724,750.00 $ 12,148,375.00 $ 12,987,125.00

    Rate of Inflation after Year 4 2%


    Cost of capital 14%

    Terminal value of project at the end of year 4 $ 110,390,562.50

    Present value of terminal value of project $ 65,360,074.86


    Add: Present value of annual cash inflows $ 28,563,714.05
    Less: Initial cash outlay -$ 51,275,000.00
    Net present value $ 42,648,788.91
    Year 0 1 2 3 4
    Sales $ 15,125,000.00 $ 25,850,000.00 $ 44,275,000.00 $ 49,225,000.00
    Cost of goods sold (65% of Sales) $ 9,831,250.00 $ 16,802,500.00 $ 28,778,750.00 $ 31,996,250.00
    Selling, General and Administrative expenses $ 1,500,000.00 $ 1,750,000.00 $ 2,000,000.00 $ 2,200,000.00
    Depreciation ($50,000,000/4 years) $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00
    Income before taxes -$ 8,706,250.00 -$ 5,202,500.00 $ 996,250.00 $ 2,528,750.00
    Tax expense/benefit @ 39% -$ 3,395,437.50 -$ 2,028,975.00 $ 388,537.50 $ 986,212.50
    Income after taxes -$ 5,310,812.50 -$ 3,173,525.00 $ 607,712.50 $ 1,542,537.50
    Add: Depreciation $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00
    Operating cash flows (A) $ 7,189,187.50 $ 9,326,475.00 ### ###

    Initial capital expenditure -$ 50,000,000.00


    Investment in net working capital investment -$ 1,250,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00
    Opportunity of unused equipment -$ 25,000.00
    Non operating cash flows (B) ### -$ 100,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00

    Net cash flows (A+B) ### $ 7,089,187.50 $ 9,226,475.00 ### ###

    Rate of Inflation after Year 4 2%


    Cost of capital 14%

    Terminal value of project at the end of year 4 $ 118,511,568.75

    Present value of terminal value of project $ 70,168,362.50


    Add: Present value of annual cash inflows $ 30,352,995.34
    Less: Initial cash outlay -$ 51,275,000.00
    Net present value $ 49,246,357.84
    Year 0 1 2 3 4
    Sales $ 12,375,000.00 $ 21,150,000.00 $ 36,225,000.00 $ 40,275,000.00
    Cost of goods sold (65% of Sales) $ 8,043,750.00 $ 13,747,500.00 $ 23,546,250.00 $ 26,178,750.00
    Selling, General and Administrative expenses $ 1,500,000.00 $ 1,750,000.00 $ 2,000,000.00 $ 2,200,000.00
    Depreciation ($50,000,000/4 years) $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00
    Income before taxes -$ 9,668,750.00 -$ 6,847,500.00 -$ 1,821,250.00 -$ 603,750.00
    Tax expense/benefit @ 39% -$ 3,770,812.50 -$ 2,670,525.00 -$ 710,287.50 -$ 235,462.50
    Income after taxes -$ 5,897,937.50 -$ 4,176,975.00 -$ 1,110,962.50 -$ 368,287.50
    Add: Depreciation $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00 $ 12,500,000.00
    Operating cash flows (A) $ 6,602,062.50 $ 8,323,025.00 ### ###

    Initial capital expenditure -$ 50,000,000.00


    Investment in net working capital investment -$ 1,250,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00
    Opportunity of unused equipment -$ 25,000.00
    Non operating cash flows (B) ### -$ 100,000.00 -$ 100,000.00 -$ 100,000.00 -$ 100,000.00

    Net cash flows (A+B) ### $ 6,502,062.50 $ 8,223,025.00 ### ###

    Rate of Inflation after Year 4 2%


    Cost of capital 14%

    Terminal value of project at the end of year 4 $ 102,269,556.25

    Present value of terminal value of project $ 60,551,787.23


    Add: Present value of annual cash inflows $ 26,774,432.75
    Less: Initial cash outlay -$ 51,275,000.00
    Net present value $ 36,051,219.98

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