Scribd
Upload
19 views6 pages

Untitled Spreadsheet

Uploaded by

Muhasina Muzy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
19 views6 pages

Untitled Spreadsheet

Uploaded by

Muhasina Muzy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 6

MELANIE CO

a) BORROW TO BUY
T0 T1 T2 T3
PURCHASE COST -160000
RESIDUAL VALUE 40000
MAINTANCE COST 0 -8000 -8000 -8000
NCF -160000 -8000 -8000 32000
DF 0.08
NPV -$148,863.49

LEASE DECISION
T0 T1 T2 T3
RENTAL PAYMENT -55000 -55000 -55000
NCF -55000 -55000 -55000
DF 0.08
NPV -$153,079.56

COMMENT :SINCE NPV OF COST LOWER IN BORROW TO BUY ,SO IT IS FINANCIALLLY ACC

b) IF REPLACED BY 3 YEAR
T0 T1 T2 T3
INTIAL COST -160000
SCRAP VALUE 40000
MAINTANSES COST -8000 -8000 -8000
NCF -160000 -8000 -8000 32000
DF 0.1
NPV -$149,842.22
EAC -$60,250.19
IF REPLACED BY 4 YEARS
T0 T1 T2 T3
INITIAL COST -160000
SCRAP VALUE
MAINTANSES COST -12000 -12000 -12000
NCF -160000 -12000 -12000 -12000
DF 0.1
NPV -$190,525.24
EAC -$60,102.60

SINCE EAC OF 4 IS LOWEST SO , ACCEPTABLE


O IT IS FINANCIALLLY ACCEPTABLE

T4

11000
-12000
-1000
HEBAC CO
SENSITIVITY
T0 T1 T2 T3 T4
SALES VOLUME 200 800 900 400
TOTAL SALES 3120 15575 22272.3 10294.8

NPV 11980
PV $30,078.02
sensitivity 39.83%

if the heabac c0 tax were 1 year arear ,then the sensitivity analysis will be as follows

T0 T1 T2 T3 T4 T5
VOLUME 200 800 900 400
TOTAL SALES 3120 15575.04 22272.3072 10294.75533
TAX @ 20% -624 -3115.008 -4454.46144 -2058.951066
SALE NET AFT 3120 14951.04 19157.2992 5840.29389 -2058.951066

NPV 11980
PV $30,883.69
SENSITIVITY 38.79%

SENSITIVITY OF NPV TOWARDS VARIABLE COST ASSUMING TAX IN SAME YEAR


T0 T1 T2 T3 T4
VOLUME 200 800 900 400
TOTAL VC -1890 -7938 -9376.7625 -4375.8225

NPV 11980
PV $13,976.59
SENSITIVITY 85.71%

SENSITIVITY OF NPV TOWARDS VARIABLE COST AS TAX 1 YEAR AREAR


T0 T1 T2 T3 T4
VOLUME 200 800 900 400
TOTAL VC 1890 7938 9376.7625 4375.8225
TAX @20% -378 -1587.6 -1875.3525 -875.1645
NET CF AF TX 1890 7560 7789.1625 2500.47 -875.1645

NPV 11980
PV $14,350.96
SEN 83.48%
A)
T0 T1 T2 T3 T4
VOLUME(000"S) 150 250 400 300

Expected selling price in current term 29 29 29 29

total sale 4524 7841.6 13048.4224 10177.76947


total vc -2385 -4200 -7080 -5730
total fc -440 -484 -532.4 -585.64
op cf bf tx 1699 3157.6 5436.0224 3862.12947
tax @30% -509.7 -947.28 -1630.80672 -1158.638841
tax svngs dep 337.5 337.5 337.5 337.5
intal cost & scp value -5000 500
net cf -5000 1526.8 2547.82 4142.71568 3540.990629
wacc 0.11
npv $3,805.04

since the expected npv is positve,so the project is financially acceptable


DYSXA C0 T0 T1 T2 T3 T4
a) SALES 850 850 850 850
TOTAL SALES 2714.05 2795.4715 2879.335645 2965.715714
TOTAL VC -991.1 -1050.566 -1113.59996 -1180.415958
FC -110 -205 -330 -330
OP CF BF TX 1612.95 1539.9055 1435.735685 1455.299756
TAX 20% -322.59 -307.9811 -287.147137
TX SVNG DEP 160 120 90
INTIAL CO&S -3200
NT CF AF TX -3200 1612.95 1377.3155 1247.754585 1258.152619
DF 0.1
NPV $1,188.31

SINCE NPV IS POSTIVE ,PROJECT IS FINANCIALLY ACCEPTABLE

b) PROJECT PI RANK DIVS PROJECNPV


A 2 2 1000 2100 D
B 1.6 4 3000 6000 A
C 1.7 EXCLUDED 2000 3600 E
D 2.1 1 1000 1600 B
E 1.8 3
7000 13300
OPTIMUM INVESTENT SCHEDULE :13300
T5 WNO1
DEP
1 800
2 600
3 450
4 1350
-291.0599512
270

-21.0599512

You might also like