Finance School of management Tax rate 40.00% Unit sales in year 1 4000 Sales growth rate Unit price s5000 Unit Price Growth 0.00% Fixed Start3, 100,000 Fixed Growth 000% 7500% Depreciation schedu 400,000 NPV= 1236 Start working capt,200,000 Investment schedule2,800,000 Capital movements se 0 1,000,000 Working Cap Sch 2,200.000 Year 0 2 6 CF Forecast Sales]revenue 20,00020,0002000020.00020000 20.000 20.000 Expenses Fixed Costs(cash) 3100 3,100 Variable costs 15,000 15.000 15,00015000150001500015,000 Depreciation 400 400 Operating Profit 1500 1500 1500 1,500 1500 1,500 Taxes 600 Net Profit 00 900 Operating CF 1,300 1,3001,300 1,300 1,300 1300 1,300 Working cap move 2200 -2.200 Investment in P&E 2,800 0 0 Invest CF 5.000 Net CF 5.000 1,300 1,300 1,300 1,300 1,300 1,300 3,500 PV(NCF, 15%) 00 1130 983 55 743 646 nesb 11
11 Finance School of Management Tax rate 40.00% Unit sales in year 1 $4,000 Sales growth rate 0.00% Unit price $5,000 Unit Price Growth 0.00% Fixed Start 3,100,000 Fixed Growth 0.00% Variable pcent 75.00% Depreciation schedule 400,000 NPV = 1236 Start working capt 2,200,000 Investment schedule 2,800,000 Capital movements sch 0 Dividend 1,000,000 Working Cap Sch 2,200,000 Year 0 1 2 3 4 5 6 7 CF Forecast Sales revenue 20,000 20,000 20,000 20,000 20,000 20,000 20,000 Expenses Fixed Costs (cash) 3,100 3,100 3,100 3,100 3,100 3,100 3,100 Variable costs 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Depreciation 400 400 400 400 400 400 400 Operating Profit 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Taxes 600 600 600 600 600 600 600 Net Profit 900 900 900 900 900 900 900 Operating CF 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Working cap move 2200 -2,200 Investment in P&E 2,800 0 0 0 0 0 0 Invest CF 5,000 0 0 0 0 0 0 -2,200 Net CF -5,000 1,300 1,300 1,300 1,300 1,300 1,300 3,500 PV(NCF, 15%) -5000 1130 983 855 743 646 562 1316
Finance School of management PC1000: Cash Flows 2.2 A seven-year coupon bond with an annual coupon payment of $1. 3 million, a face value of $2.2 million, and a price of $5 million uesTc 12
12 Finance School of Management PC1000: Cash Flows 1.3 1.3 1.3 1.3 1.3 1.3 1.3 -5 1.3 1.3 2.2 • A seven-year coupon bond with an annual coupon payment of $1.3 million, a face value of $2.2 million, and a price of $5 million