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    BT Tđda

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    Phú Tài Lê
    The document outlines a project called "The Delta Project" that involves increasing production quantity over 8 years. It shows the capital outlays, sales, costs, profits/losses, and cash flows over the 8 years. In year 3, an upgrade is done requiring $500,000 of capital and increasing production capacity. Profits increase over the years as production and sales increase, reaching a peak of $237,000 in year 4 before declining in later years. The cumulative cash flows are positive by year 4 and the project returns a profit.

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    BT Tđda

    Uploaded by

    Phú Tài Lê
    19 views3 pages
    The document outlines a project called "The Delta Project" that involves increasing production quantity over 8 years. It shows the capital outlays, sales, costs, profits/losses, and cash flows over the 8 years. In year 3, an upgrade is done requiring $500,000 of capital and increasing production capacity. Profits increase over the years as production and sales increase, reaching a peak of $237,000 in year 4 before declining in later years. The cumulative cash flows are positive by year 4 and the project returns a profit.

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    BT-TĐDA

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    The document outlines a project called "The Delta Project" that involves increasing production quantity over 8 years. It shows the capital outlays, sales, costs, profits/losses, and cash flows over the 8 years. In year 3, an upgrade is done requiring $500,000 of capital and increasing production capacity. Profits increase over the years as production and sales increase, reaching a peak of $237,000 in year 4 before declining in later years. The cumulative cash flows are positive by year 4 and the project returns a profit.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    19 views3 pages

    BT Tđda

    Uploaded by

    Phú Tài Lê
    The document outlines a project called "The Delta Project" that involves increasing production quantity over 8 years. It shows the capital outlays, sales, costs, profits/losses, and cash flows over the 8 years. In year 3, an upgrade is done requiring $500,000 of capital and increasing production capacity. Profits increase over the years as production and sales increase, reaching a peak of $237,000 in year 4 before declining in later years. The cumulative cash flows are positive by year 4 and the project returns a profit.

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    EX 3: THE DELTA PROJECT

    Year 0 1 2 3 4
    Capital outlay ($1000) -1000 -500
    Savage value ($1000)
    Depcritiation of innitial investment -125 -125 -125 -125
    Depcritiation of upgrade -100
    Quantity (unit) 720000 740000 760000 780000 1280000
    Price ($) 0.5 0.5 0.5 0.5 0.5
    Sales ($1000) 360 370 380 390 640
    Production cost ($1000) -72 -74 -76 -78 -128
    Operating cost ($1000) -50 -50 -50 -50 -50
    Changes in working capital ($1000) -2 -0.5 -0.6 -0.5 -0.4
    Profits($1000) 238 121 129 137 237
    Income tax -71.4 -36.3 -38.7 -41.1 -71.1
    Net Inflow -835.4 209.2 214.7 -279.6 390.5

    Working capital 2000 2500 3100 3600 4000


    0.5 0.6 0.5 0.4
    5 6 7 8
    dvi: $
    16
    -125 -125 -125 -125
    -100 -100 -100 -100
    1780000 2280000 2780000
    0.75 0.75 0.75
    1335 1710 2085
    -178 -228 -278
    -55 -55 -55
    -0.3 -0.2 1.5 3
    877 1202 1527 -225
    -263.1 -360.6 -458.1 0
    838.6 1066.2 1295.4 19

    4300 4500 3000 0


    0.3 0.2 -1.5 -3
    Ex 11

    Year 1 Year 2 Year 3 Year 4


    0 1 2 3
    Sales volume ( units/year) 520000 624000 717000 788000
    Selling price ($/unit) 30 30 30 30
    Inflation adjusted price 30 31.2 32.448 33.74592
    Variable cost ($/unit) 10 10.2 10.61 10.93
    Inflation adjusted VC 10 10.506 11.256149 11.943506
    Fixed costs ($) 700000 735000 779000 841000
    Sale ($1000) 15600 19468.8 23265.216 26591.785
    VC ($1000) -5200 -6555.744 -8070.659 -9411.4828
    FC ($1000) -700 -735 -779 -841
    Invesment cost ($1000) -25000
    Depreciation -6250 -6250 -6250
    -6250
    Scrap value 1250
    Profit 3450 5928.056 8165.5572 11339.302
    Income Tax -1035 -1778.4168 -2449.667 -3401.7906
    Net Inflow -16335 10399.6392 11965.89 14187.512
    Nominal NPV $11,239.21

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