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    Fonderia Di Torino Excel

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    peachrose12
    This document provides an estimate of annual cash flows for Vulcan Mold-Maker over three years for both their current manual labor operations and potential semi-automated machines. For the manual operations, costs such as labor, maintenance, fuel and depreciation are shown to result in a small negative annual cash flow. For the semi-automated machines, operating costs are higher but result in a larger negative cash flow each year due to the significant capital expenditure required for purchasing the new machines.

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    Fonderia Di Torino Excel

    Uploaded by

    peachrose12
    3K views10 pages
    This document provides an estimate of annual cash flows for Vulcan Mold-Maker over three years for both their current manual labor operations and potential semi-automated machines. For the manual operations, costs such as labor, maintenance, fuel and depreciation are shown to result in a small negative annual cash flow. For the semi-automated machines, operating costs are higher but result in a larger negative cash flow each year due to the significant capital expenditure required for purchasing the new machines.

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    Shareholder finance

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    This document provides an estimate of annual cash flows for Vulcan Mold-Maker over three years for both their current manual labor operations and potential semi-automated machines. For the manual operations, costs such as labor, maintenance, fuel and depreciation are shown to result in a small negative annual cash flow. For the semi-automated machines, operating costs are higher but result in a larger negative cash flow each year due to the significant capital expenditure required for purchasing the new machines.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    3K views10 pages

    Fonderia Di Torino Excel

    Uploaded by

    peachrose12
    This document provides an estimate of annual cash flows for Vulcan Mold-Maker over three years for both their current manual labor operations and potential semi-automated machines. For the manual operations, costs such as labor, maintenance, fuel and depreciation are shown to result in a small negative annual cash flow. For the semi-automated machines, operating costs are higher but result in a larger negative cash flow each year due to the significant capital expenditure required for purchasing the new machines.

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    © All Rights Reserved
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    The document provides cost estimates and cash flow analyses for a Vulcan mold-maker and semi-automated machines over multiple years.

    The annual cash flows for the Vulcan and semi-automated machines are shown on pages 1-4, with costs such as labor, maintenance, fuel, depreciation, taxes, etc. listed for each year.

    On page 5, the costs for the old and new machines list factors like number of employees, wages, maintenance costs, supplies, power costs, and savings. The new machine requires fewer employees.

    ESTIMATE OF VULCAN MOLD-MAKER ANNUAL CASH FLOWS

    LABOR COST
    SEMI AUTO LABOR
    MAINTENANCE
    FUEL
    LABOR SAV
    DEPRECIATION
    PRETAX COSTS
    TAXES
    AFTER TAX COST
    + DEPREC
    - CAP EXPEND
    CASH FLOW

    ($813,296.00)

    ($38,170.00)
    $0.00
    ($59,500.00)
    ($26,850.00)
    $5,200.00
    ($126,250.00)
    ($245,570.00)
    $105,595.00
    ($139,975.00)
    $126,250.00
    $0.00
    ($13,725.00)

    ($39,315.00)
    $0.00
    ($61,285.00)
    ($27,656.00)
    $5,356.00
    ($126,250.00)
    ($249,150.00)
    $107,134.00
    ($142,016.00)
    $126,250.00
    $0.00
    ($15,766.00)

    ($40,494.00)
    $0.00
    ($63,124.00)
    ($28,485.00)
    $5,517.00
    ($126,250.00)
    ($252,836.00)
    $108,720.00
    ($144,116.00)
    $126,250.00
    $0.00
    ($17,866.00)

    ESTIMATE OF SEMI-AUTOMATED MACHINES ANNUAL CASH FLOWS


    OPERATING LABOR
    MAINTEN LABOR
    MAINTEN SUPP
    FUEL
    DEPRECIATION
    PRETAX COST
    TAXES
    AFTER TAX COST
    +DEPRECIATION
    -CAP EXPENDITURE
    CASH FLOW

    ($295,546.00)
    ($39,564.00)
    ($4,000.00)
    ($12,300.00)
    ($47,521.00)
    ($398,931.00)
    $171,540.00
    ($227,391.00)
    $47,521.00
    $0.00
    ($179,870.00)

    ($304,412.00)
    ($40,751.00)
    ($4,120.00)
    ($12,669.00)
    ($47,521.00)
    ($409,473.00)
    $176,073.00
    ($233,400.00)
    $47,521.00
    $0.00
    ($185,879.00)

    ($313,544.00)
    ($41,973.00)
    ($4,244.00)
    ($13,049.00)
    ($47,521.00)
    ($420,331.00)
    $180,742.00
    ($239,589.00)
    $47,521.00
    $0.00
    ($192,068.00)

    ($41,709.00)
    $0.00
    ($65,017.00)
    ($29,340.00)
    $5,682.00
    ($126,250.00)
    ($256,634.00)
    $110,353.00
    ($146,281.00)
    $126,250.00
    $0.00
    ($20,031.00)

    ($42,960.00)
    $0.00
    ($66,968.00)
    ($30,220.00)
    $5,853.00
    ($126,250.00)
    ($260,545.00)
    $112,034.00
    ($148,511.00)
    $126,250.00
    $0.00
    ($22,261.00)

    ($44,249.00)
    $0.00
    ($68,977.00)
    ($31,127.00)
    $6,028.00
    ($126,250.00)
    ($264,575.00)
    $113,767.00
    ($150,808.00)
    $126,250.00
    $0.00
    ($24,558.00)

    ($45,576.00)
    $0.00
    ($71,046.00)
    ($32,060.00)
    $6,209.00
    ($126,250.00)
    ($268,723.00)
    $115,551.00
    ($153,172.00)
    $126,250.00
    $0.00
    ($26,922.00)

    ($46,944.00)
    $0.00
    ($73,177.00)
    ($33,022.00)
    $6,395.00
    ($126,250.00)
    ($272,998.00)
    $117,389.00
    ($155,609.00)
    $126,250.00
    $0.00
    ($29,359.00)

    ($322,951.00)
    ($43,233.00)
    ($4,371.00)
    ($13,441.00)
    ($47,521.00)
    ($431,517.00)
    $185,552.00
    ($245,965.00)
    $47,521.00
    $0.00
    ($198,444.00)

    ($332,639.00)
    ($44,530.00)
    ($4,502.00)
    ($13,844.00)
    ($47,521.00)
    ($443,036.00)
    $190,505.00
    ($252,531.00)
    $47,521.00
    $0.00
    ($205,010.00)

    ($342,618.00)
    ($45,866.00)
    ($4,637.00)
    ($14,259.00)
    ($47,521.00)
    ($454,901.00)
    $195,607.00
    ($259,294.00)
    $47,521.00
    $0.00
    ($211,773.00)

    ($352,897.00)
    ($47,241.00)
    ($4,776.00)
    ($14,687.00)
    $0.00
    ($419,601.00)
    $180,429.00
    ($239,172.00)
    $0.00
    $0.00
    ($239,172.00)

    ($363,484.00)
    ($48,659.00)
    ($4,919.00)
    ($15,127.00)
    ($432,189.00)
    $185,841.00
    ($246,348.00)
    $0.00
    $0.00
    ($246,348.00)

    QUESTION 2 VULCAN CASH FLOW


    0
    LABOR COST
    SEMI AUTO LABOR
    MAINTENANCE
    FUEL
    LABOR SAV
    DEPRECIATION
    PRETAX COSTS
    TAXES
    AFTER TAX COST
    + DEPREC
    - CAP EXPEND
    CASH FLOW

    ($813,296.00)

    ($38,170.00)
    $0.00
    ($59,500.00)
    ($26,850.00)
    $5,200.00
    ($126,250.00)
    ($245,570.00)
    $105,595.00
    ($139,975.00)
    $126,250.00
    $0.00
    ($13,725.00)

    ($38,170.00)
    $0.00
    ($59,500.00)
    ($26,850.00)
    $5,200.00
    ($126,250.00)
    ($245,570.00)
    $105,595.00
    ($139,975.00)
    $126,250.00
    $0.00
    ($13,725.00)

    ($38,170.00)
    $0.00
    ($59,500.00)
    ($26,850.00)
    $5,200.00
    ($126,250.00)
    ($245,570.00)
    $105,595.00
    ($139,975.00)
    $126,250.00
    $0.00
    ($13,725.00)

    ($295,546.00)
    ($39,564.00)
    ($4,000.00)
    ($12,300.00)
    ($47,521.00)
    ($398,931.00)
    $171,540.00
    ($227,391.00)
    $47,521.00
    $0.00
    ($179,870.00)

    ($295,546.00)
    ($39,564.00)
    ($4,000.00)
    ($12,300.00)
    ($47,521.00)
    ($398,931.00)
    $171,540.00
    ($227,391.00)
    $47,521.00
    $0.00
    ($179,870.00)

    ($295,546.00)
    ($39,564.00)
    ($4,000.00)
    ($12,300.00)
    ($47,521.00)
    ($398,931.00)
    $171,540.00
    ($227,391.00)
    $47,521.00
    $0.00
    ($179,870.00)

    QUESTION 3 SEMI AUTOMATED CASH FLOW


    OPERATING LABOR
    MAINTEN LABOR
    MAINTEN SUPP
    FUEL
    DEPRECIATION
    PRETAX COST
    TAXES
    AFTER TAX COST
    +DEPRECIATION
    -CAP EXPENDITURE
    CASH FLOW

    ($38,170.00)
    $0.00
    ($59,500.00)
    ($26,850.00)
    $5,200.00
    ($126,250.00)
    ($245,570.00)
    $105,595.00
    ($139,975.00)
    $126,250.00
    $0.00
    ($13,725.00)

    ($38,170.00)
    $0.00
    ($59,500.00)
    ($26,850.00)
    $5,200.00
    ($126,250.00)
    ($245,570.00)
    $105,595.00
    ($139,975.00)
    $126,250.00
    $0.00
    ($13,725.00)

    ($295,546.00)
    ($39,564.00)
    ($4,000.00)
    ($12,300.00)
    $0.00
    ($351,410.00)
    $151,106.00
    ($200,304.00)
    $0.00
    $0.00
    ($200,304.00)

    ($295,546.00)
    ($39,564.00)
    ($4,000.00)
    ($12,300.00)
    $0.00
    ($351,410.00)
    $151,106.00
    ($200,304.00)
    $0.00
    $0.00
    ($200,304.00)

    Fonderia Di Torino S.P.A.

    Sales
    Costs
    Depreciation
    EBIT
    Tax(43%)
    Net Income
    Operating Cash Flow
    Machine Costs
    # employees
    wage
    hours
    maintenance
    # of equivalent employees
    wage
    hours
    supplies
    power
    savings
    days
    costs

    Old Machine
    280,000,000
    351409.6
    47520
    279,601,070
    120228460.3
    159,372,610
    159,420,130
    Old
    24
    7.33
    8
    188.4
    3
    7.85
    8
    4000
    12300
    0
    210
    351409.6

    New Machine
    280,000,000
    119319.6
    126,250
    279,754,430
    120294405.1
    159,460,025
    159,586,275
    New
    2
    11.36
    8
    59500
    0
    0
    0
    0
    26850
    5200
    210
    119319.6

    Book Value
    Capital Loss= Resale value-Book value
    Tax Savings=Capital Loss*Tax Rate
    Capital Expenditure= Cost of New Machine-Resale Value of Old machine-savings in Tax

    CASH FlOWS
    CF0
    CF1
    CF2

    -813298.25
    166145
    166145

    CF3
    CF4
    CF5
    CF6
    CF7
    CF8

    166145
    166145
    166145
    166145
    166145
    451270
    Cost of Equity

    WACC

    Jaimini Patel
    Sarah Fitzpatrick
    Jessica Hicks

    depreciation for new machine


    126,250

    -166,145
    The New Machine would save
    166,145 per year with the
    current level of sales. It is a
    positive Incremental Cash
    Flow.

    (415807-130682)
    (130000-285125)
    (155125*0.43)

    285125
    155125
    66703.75
    813296.25

    Old machine-savings in Tax

    Discount Rate
    19%

    18%
    NPV
    IRR
    Profitability Index

    -59976.96
    15.84%
    0.93

    -85397.98
    0.89

    Payback Period

    4.90

    1984 assumption
    Majority Shareholder assumption

    14%
    18%

    Cost of Equity

    WACC

    12.80%

    9.86%

    Rate
    17%
    -33100.66
    0.96

    Cost of Equity = Rf + ( E(Rm) - Rf )


    Risk Free Rate
    Risk Premium
    (Beta)

    5.30%
    6.00%
    1.25

    WACC = Re ( E/(D+E) ) + Rd (D/D+E) )*(1-T)

    Debt Interest Rate


    Tax Rate
    Debt
    Equity

    6.80%
    43.00%
    33.0%
    67.0%

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