Units
Year 0
Revenue
COGS
Gross Profit
Fixed Costs
Depreciation Expense
EBIT
taxes
NOPAT
Depreciation Expense
CF impact from chng NOWC
Capital Expenditures
Asset Sale
Free Cash Flow (FCF)
(500,000.00)
(4,600,000.00)
4,000
10,000
Year 1
Year 2
1)
$ 4,000,000.00 $
400,000.00
4)
2)
5)
400,000.00
400,000.00
1,200,000.00
1,200,000.00
(400,000.00)
1,400,000.00
(160,000.00)
560,000.00
(240,000.00)
840,000.00
1,200,000.00
1,200,000.00
3)
(167,671.23)
$ (5,100,000.00) $ 1,348,219.18
NPV
WACC
Tax rate
$
DSO
DSI
DPO
202,223.88
9.9%
40.0%
Sales price
BV
Loss on Sale
Tax
24
18
12
Part a)
1)
5)
2)
6)
3)
7)
4)
8)
Part b)
6)
8,000
Year 3
3,200,000.00
800,000.00
2,400,000.00
400,000.00
1,200,000.00
800,000.00
320,000.00
480,000.00
1,200,000.00
55,890.41
$ 1,735,890.41
Opportunity cost
800,000.00
1,000,000.00
(200,000.00)
80,000.00
6,000
Year 4
$ 2,400,000.00
600,000.00
1,800,000.00
400,000.00
1,400,000.00
560,000.00
840,000.00
7)
880,000.00
8)
tunity cost
CF IN
CF IN

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