Build a 5 year capital budget based on most likely assumptions . Calculate: Investment: price, quantity, revenue,
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Build a 5 year capital budget based on most likely assumptions. Calculate: Investment: price, quantity, revenue, expenses, salaries, supplies, depreciation, total expense, net income, tax, net income after tax, plus depreciation, net cash flow, present value factor, present value of cash flow, evaluation measures NPV AND IRR. Please include all formulas and detailed calculations for all areas used in the answer and explanation.
Assumptions | Most Likely | Best case | Worst case |
Quantity | 2,400 | 2,640 | 2,160 |
Price | $100.00 | $110.00 | $90 |
Salaries | $120,000 | $110,000 | $130,000 |
Supplies | $12.50 | $11.00 | $14.00 |
Depreciation | $60,000 | $60,000 | $60,000 |
Growth rate, output | 2.0% | 3.0% | 1.0% |
Inflation rate, output prices | 2.0% | 4.0% | 0.0% |
Inflation rate, expenses (not depreciation) | 3.0% | 1.0% | 5.0% |
Tax rate | 35.0% | 35.0% | 35.0% |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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