NPV -- 25049$
RnD | 300,000 |
Cost | 1,500,000 |
Inflation | 2.5% |
Sale value | 1,300,000 |
Required rate of return | 10% |
rate of return real | 12.5% |
Yrs | 1 | 2 | 3 | Total |
No | 4000 | 5000 | 5500 | |
Sale price | 250 | 250 | 263.75 | |
Increase in real terms | 0 | 3% | 3% | |
Total increase | 0 | 5.5% | 5.5% | |
Total Price | 250.0 | 263.8 | 278.3 | |
Total Sales | 1,000,000 | 1,318,750 | 1,530,409 | 3,849,159 |
Variable Cost | 120 | 120 | 120 | |
Increase in real terms | 0 | 3% | 3% | |
Total increase | 0 | 5.5% | 5.5% | |
Actual cost | 120.0 | 126.6 | 126.6 | |
Total cost | 480,000 | 633,000 | 696,300 | 1,809,300 |
Personnel | 50,000 | 50,000 | 50,000 | 150,000 |
CCA | 4% | 4% | 4% | |
Total Cost | 52,000 | 52,000 | 52,000 | 156,000 |
Profit | 468,000 | 633,750 | 782,109 | 1,883,859 |
Tax | 35% | 35% | 35% | |
PAT | 304,200 | 411,938 | 508,371 | 1,224,509 |
Additional WC | 150,000 | 47,813 | 31,749 |
Year | Opening Amt | Interest | Balance |
0 | (1,800,000) | (225,000.0) | (2,025,000.0) |
1 | (1,870,800.0) | (233,850.0) | (2,104,650.0) |
2 | (1,740,525.0) | (217,565.6) | (1,958,090.6) |
3 | (181,468.4) | (22,683.6) | 25,409.4 |
Opening Amount calcualtion
Yr 0 - Rnd cost + Factory cost
Yr 1 - Yr0 balance + yr1 PAT - Yr 1 WC
Yr 2 - Yr 1 balance +yr2 PAT-Yr 2 WC
Yr 3 - Yr2 Balance + yr 3 PAT - yr3 WC + Sale value
Yr 3 closing - Yr 3 Opening + interest + 3 yrs WC total
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