Homework Answers
| Time line | 0 | 1 | 2 | 3 | 4 | 5 | |||
| Cost of new machine | -19700000 | ||||||||
| Initial working capital | -1600000 | ||||||||
| =Initial Investment outlay | -21300000 | ||||||||
| 7 years MACR rate | 14.29% | 24.49% | 17.49% | 12.49% | 8.93% | 22.31% | |||
| Unit sales | 78000 | 83400 | 90200 | 86300 | 74300 | ||||
| Profits | =no. of units sold * (sales price - variable cost) | 14196000 | 15178800 | 16416400 | 15706600 | 13522600 | |||
| Fixed cost | -4400000 | -4400000 | -4400000 | -4400000 | -4400000 | ||||
| -Depreciation | =Cost of machine*MACR% | -2815130 | -4824530 | -3445530 | -2460530 | -1759210 | 4395070 | =Salvage Value | |
| =Pretax cash flows | 6980870 | 5954270 | 8570870 | 8846070 | 7363390 | ||||
| -taxes | =(Pretax cash flows)*(1-tax) | 5235652.5 | 4465702.5 | 6428152.5 | 6634552.5 | 5522542.5 | |||
| +Depreciation | 2815130 | 4824530 | 3445530 | 2460530 | 1759210 | ||||
| =after tax operating cash flow | 8050782.5 | 9290232.5 | 9873682.5 | 9095082.5 | 7281752.5 | ||||
| Working capital during the project | (N+1 sales-N sales)*0.15 | -272970 | -343740 | 197145 | 606600 | ||||
| reversal of working capital | 1412965 | ||||||||
| +Proceeds from sale of equipment after tax | =selling price* ( 1 -tax rate) | 2955000 | |||||||
| +Tax shield on salvage book value | =Salvage value * tax rate | 1098767.5 | |||||||
| =Terminal year after tax cash flows | 5466732.5 | ||||||||
| Total Cash flow for the period | -21300000 | 7777812.5 | 8946492.5 | 10070827.5 | 9701682.5 | 12748485 | |||
| Discount factor= | (1+discount rate)^corresponding period | 1 | 1.18 | 1.3924 | 1.643032 | 1.9387778 | 2.2877578 | ||
| Discounted CF= | Cashflow/discount factor | -21300000 | 6591366.525 | 6425231.614 | 6129416.53 | 5004019.9 | 5572480.3 | ||
| NPV= | Sum of discounted CF= | 8422514.86 | |||||||
| Total Cash flow for the period | -21300000 | 7777812.5 | 8946492.5 | 10070827.5 | 9701682.5 | 12748485 | |
| Discount factor= | (1+discount rate)^corresponding period | 1 | 1.331184247 | 1.772051501 | 2.358927043 | 3.1401665 | 4.1801402 |
| Discounted CF= | Cashflow/discount factor | -21300000 | 5842776.847 | 5048663.934 | 4269240.767 | 3089544 | 3049774.5 |
| NPV= | Sum of discounted CF= | 0.00 | |||||
| IRR is discount rate at which NPV = 0 = | 33.12% |
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Aday Acoustics, Inc., projects unit sales for a new 7-octave voice emulation implant as follows: Year...
Aday Acoustics, Inc., projects unit sales for a new 7-octave voice emulation implant as follows: Year...
Aday Acoustics, Inc., projects unit sales for a new 7-octave voice emulation implant as follows: Year nmt Unit Sales 77,100 82,500 89,000 85,400 73,100 Production of the implants will require $1,570,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $4,250,000 per year, variable production costs are $152 per unit, and the units are priced at $334 each....
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 74,600 87,600 107.000 99,400 68,100 Production of the implants will require $1,900,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $4,000,000 per year, variable production costs are $263 per unit, and the units are priced at $399 each....
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 73,000 86,000 105,000 97,000 67,000 mo Production of the implants will require $1,500,000 in net working capital to start and additional networking capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,200,000 per year, variable production costs are $255 per unit, and the units are priced at $375 each....
Aria Acoustics inc projects unit sales for a new seven octave voice emulation implant as follows...
Aria Acoustics inc projects unit sales for a new seven octave voice emulation implant as follows: year 1 74,000 2 87,000 Aria Acoustics, Inc. (AA, projects unit sales for a new seven-octave voice emulation mplant as folows 74,000 87000 3 106 250 98,500 67.800 Production of the implants will require $1750,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year Total fixed...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year NM Unit Sales 73,800 86,800 106,000 98,200 67,700 Production of the implants will require $1,700,000 in net working capital to start and additional networking capital investments each year equal to 10 percent of the projected sales increase for the following year. Total fixed costs are $3,600,000 per year, variable production costs are $259 per unit, and the units are priced at $387 each....
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year AM Unit Sales 78,000 91,000 105,000 100,000 81,000 Production of the implants will require $1,570,000 in net working capital to start and additional net working capital investments each year equal to 10 percent of the projected sales increase for the following year. Total fixed costs are $1,470,000 per year, variable production costs are $250 per unit, and the units are priced at $365...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 1 75,000 2 88,000 3 107,500 4 100,000 5 68,300 Production of the implants will require $2,000,000 in net working capital to start and additional networking capital investments each year equal to 10 percent of the projected sales increase for the following year. Total fixed costs are $4,200,000 per year, variable production costs are $265 per unit, and the units are...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows Year 2 4 Unit Sales 73,000 86,000 105,000 97,000 67,000 5 Production of the implants will require $1,500,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,200,000 per year, variable production costs are $255 per unit, and the units are priced...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year WN Unit Sales 71,500 87.800 104,300 89,200 75,300 Production of the implants will require $1.5 million in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $2.15 million per year, variable production costs are $230 per unit, and the units are priced...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows:...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year points -NM Unit Sales 73,000 86,000 105,000 97,000 67,000 Skipped eBook Print References Production of the implants will require $1,500,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,200,000 per year, variable production costs are $255 per unit, and the...
Aday Acoustics, Inc., projects unit sales for a new 7-octave voice emulation implant as follows: Year nmt Unit Sales 77,100 82,500 89,000 85,400 73,100 Production of the implants will require $1,570,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $4,250,000 per year, variable production costs are $152 per unit, and the units are priced at $334 each....
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 74,600 87,600 107.000 99,400 68,100 Production of the implants will require $1,900,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $4,000,000 per year, variable production costs are $263 per unit, and the units are priced at $399 each....
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year Unit Sales 73,000 86,000 105,000 97,000 67,000 mo Production of the implants will require $1,500,000 in net working capital to start and additional networking capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,200,000 per year, variable production costs are $255 per unit, and the units are priced at $375 each....
Aria Acoustics inc projects unit sales for a new seven octave voice emulation implant as follows: year 1 74,000 2 87,000 Aria Acoustics, Inc. (AA, projects unit sales for a new seven-octave voice emulation mplant as folows 74,000 87000 3 106 250 98,500 67.800 Production of the implants will require $1750,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year Total fixed...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year NM Unit Sales 73,800 86,800 106,000 98,200 67,700 Production of the implants will require $1,700,000 in net working capital to start and additional networking capital investments each year equal to 10 percent of the projected sales increase for the following year. Total fixed costs are $3,600,000 per year, variable production costs are $259 per unit, and the units are priced at $387 each....
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year AM Unit Sales 78,000 91,000 105,000 100,000 81,000 Production of the implants will require $1,570,000 in net working capital to start and additional net working capital investments each year equal to 10 percent of the projected sales increase for the following year. Total fixed costs are $1,470,000 per year, variable production costs are $250 per unit, and the units are priced at $365...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows Year 2 4 Unit Sales 73,000 86,000 105,000 97,000 67,000 5 Production of the implants will require $1,500,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,200,000 per year, variable production costs are $255 per unit, and the units are priced...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year WN Unit Sales 71,500 87.800 104,300 89,200 75,300 Production of the implants will require $1.5 million in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $2.15 million per year, variable production costs are $230 per unit, and the units are priced...
Aria Acoustics, Inc. (AAI), projects unit sales for a new seven-octave voice emulation implant as follows: Year points -NM Unit Sales 73,000 86,000 105,000 97,000 67,000 Skipped eBook Print References Production of the implants will require $1,500,000 in net working capital to start and additional net working capital investments each year equal to 15 percent of the projected sales increase for the following year. Total fixed costs are $3,200,000 per year, variable production costs are $255 per unit, and the...
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