Finance Concepts (PDF)

Added on - 31 May 2021

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Running head: FINANCEFinanceName of the Student:Name of the University:Author’s Note
FINANCE1Expected Sales RevenueParticulars12345Sales Volume Growth Rate50%50%-50%-50%Expected Sales Volume200000300000450000225000112500Selling Price Growth Rate3%3%3%3%Selling Price per unit$75.00$77.25$79.57$81.95$84.41Total Sales Revenue$150,00,000$231,75,000$358,05,375$184,39,768$94,96,481Expected Sales Revenue:Capital Budgeting Analysis
FINANCE2Particulars012345Initial Investment:Cost of Plant & Equipment-$150,00,000Net Working Capital-$30,00,000Total Initial Investment-$180,00,000Operating Cash Flow:Sales revenue$150,00,000$231,75,000$358,05,375$184,39,768$94,96,481Cost of Goods Sold-$90,00,000-$139,05,000-$214,83,225-$110,63,861-$56,97,888Selling, General & AdministrationExpenses-$10,00,000-$10,50,000-$11,02,500-$11,57,625-$12,15,506Loss of Rental Revenue-$2,50,000-$2,50,000-$2,50,000-$2,50,000-$2,50,000Depreciation Expenses-$30,00,000-$30,00,000-$30,00,000-$30,00,000-$30,00,000Net Profit Before Tax$17,50,000$49,70,000$99,69,650$29,68,282-$6,66,914Income Tax @30%-$5,25,000-$14,91,000-$29,90,895-$8,90,485$0Net Profit after Tax$12,25,000$34,79,000$69,78,755$20,77,798-$6,66,914Add: Depreciation Expenses$30,00,000$30,00,000$30,00,000$30,00,000$30,00,000Net Operating Cash Flow$42,25,000$64,79,000$99,78,755$50,77,798$23,33,086Salvage Value:Recovery of Net Working Capital$30,00,000Net Salvage Value$0$0$0$0$30,00,000Net Cash Flow-$180,00,000$42,25,000$64,79,000$99,78,755$50,77,798$53,33,086WACC10.00%10.00%10.00%10.00%10.00%10.00%Discounted Cash Flow-$180,00,000$38,40,909$53,54,545$74,97,186$34,68,204$33,11,427Cumulative Cash Flow-$180,00,000-$137,75,000-$72,96,000$26,82,755$77,60,553$130,93,639Cumulative Discounted Cash Flow-$180,00,000-$141,59,091-$88,04,545-$13,07,359$21,60,845$54,72,272Net Present Value$54,72,272IRR20.94%Payback Period (in years)2.73Discounted Payback Period (in years)3.38Profitability Index1.30Capital Budgeting Analysis:
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