Figure 1 Financial analysis of Project A Initial Expenditures Net cost of new fixed assets Additional...

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Figure 1 Financial analysis of Project A Initial Expenditures Net cost of new fixed assets Additional revenue Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back depreciation Net change in cash flow Net cost of new assets Additional revenue Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back Amortization Net change in cash flow $ Figure 2 Financial analysis of Project B Initial Expenditures $75,000 Net cost of new assets Additional revenue $25,000 (25,000) (75,000) Figure 3 Initial Expenditures $ 100,000 2021 $ $ $ $ $ $ $ $ 2021 $ $ $ $ $ $ $ $ 3,655 $ 500 $ $ 8,000 S 500 $ 5,280 S 2,220 $ $ 733 $ $ 1,487 S 3,600 $ (445) $ 2022 (445) 3,600 $ 5,280 3,155 $ 1,925 6,767 $ 2022 8,313 $ 16,625 2,625 $ 2,625 1,925 $ 1,925 3,763 $ 12,075 1.242 $ 3,985 2,521 $ 8,090 $ 1,925 4,446 $ 10,015 $ 11,000 $ 22,000 $ $ $ S S $ S Financial analysis of Project C 2021 2022 S $ 2023 2023 2023 10,000 500 8,028 2024 $ $ $ 500 $ $ 5,670 $ 5.670 15,830 5,040 4,460 $ 18,830 $ 1,472 $ 6,214 $ 5,224 2,988 $ 12,616 $ 10,606 5,040 $ 5,670 $ 5,670 $ 18,286 $ 16,276 33,000 2024 25,000 2024 2025 24,938 $ 37,406 $ 49,875 2,625 1,925 2,625 $ 2,625 S 1.925 $ 1,925 S 20,388 $ 32,856 S 45,325 6.728 $ 10,843 S 14,957 13,660 $ 22,014 $ 30,368 $ $ 1,925 1,925 15,585 $ 23,939 S 32,293 1,925 2025 22,000 500 2025 $ 49,500 $ 66,000 Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back depreciation Net change in cash flow Net cost of new assets Figure 4 Financial analysis of Project D Initial Expenditures Additional revenue Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back depreciation $ Net change in cash flow (100,000) $ $55,000 (55,000) $ $ $ $ $ $ $ $ 5,000 $ $ 14,000 $ (8,000) $ $ $ $ 2021 $ $ 6,000 $ 45,000 3,000 8,000 34,000 11,220 22,780 8,000 $ $ 30,780 (8,000) $ 14,000 $ 5,000 $ 20,000 $ (3,000) $ $ $ (3,000) 20,000 17,000 2022 $ 37,500 $ $ $ $ $ $ 4,000 $ 12,000 $ 21,500 $ 7,095 14,405 $ 12,000 $ 26,405 $ $ $ $ $ $ 2023 $ 5,000 5,000 $ 17,500 $ 5,000 17,500 $ 17,500 10,500 $ 27,000 $ 43,500 3,465 $ 8,910 $ 14,355 7,035 $ 18,090 $ 29,145 17,500 $ 17,500 $ 17,500 35,590 $ 46,645 24,535 $ 10,000 $ 5,000 $ 5,500 11,000 $ 11,000 (6,000) $ (8,000) $ (6,000) $ 11,000 5,000 2024 $ $ 8,500 $ (8,000) 11,000 2025 3,000 6,500 6,000 $ $ 11,000 $ (10,500) $ $ (10,500) $ $ 11,000 500 Figure 5* Accounting information COGS Cash Depreciation Expense Interest Expense SG&A Expenses Accounts Payable Net Fixed Assets Sales Accounts Receivable Inventory Common Stock Par @ $1 Add'l Paid in Capital Preferred Equity par @ 100 Retained earnings Long term Debt $ $ $ $ $ $ $ $ $ $ $ $ GA $ 2021 forecast ?? 52,663 10,000 ??. 71,663 105,000 275,625 55,487 70,903 10,000 217,200 25,300 2020 $ ?? $ 87,000 $ 10,000 $ $ 68,250 $ $ 90,000 $ 262,500 $ 42,940 $ 52,500 $ 10,000 $ 217,200 $ 25,300 ?? $ $ $ $ $ $ 100,000 $ 250,000 $ 37,500 $ 50,000 $ 10,000 $ 217,200 $ 25,300 $ 2019 ?? $ 74,440 10,000 65,000 ?? I Figure 1 Financial analysis of Project A Initial Expenditures Net cost of new fixed assets Additional revenue Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back depreciation Net change in cash flow Net cost of new assets Additional revenue Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back Amortization Net change in cash flow $ Figure 2 Financial analysis of Project B Initial Expenditures $75,000 Net cost of new assets Additional revenue $25,000 (25,000) (75,000) Figure 3 Initial Expenditures $ 100,000 2021 $ $ $ $ $ $ $ $ 2021 $ $ $ $ $ $ $ $ 3,655 $ 500 $ $ 8,000 S 500 $ 5,280 S 2,220 $ $ 733 $ $ 1,487 S 3,600 $ (445) $ 2022 (445) 3,600 $ 5,280 3,155 $ 1,925 6,767 $ 2022 8,313 $ 16,625 2,625 $ 2,625 1,925 $ 1,925 3,763 $ 12,075 1.242 $ 3,985 2,521 $ 8,090 $ 1,925 4,446 $ 10,015 $ 11,000 $ 22,000 $ $ $ S S $ S Financial analysis of Project C 2021 2022 S $ 2023 2023 2023 10,000 500 8,028 2024 $ $ $ 500 $ $ 5,670 $ 5.670 15,830 5,040 4,460 $ 18,830 $ 1,472 $ 6,214 $ 5,224 2,988 $ 12,616 $ 10,606 5,040 $ 5,670 $ 5,670 $ 18,286 $ 16,276 33,000 2024 25,000 2024 2025 24,938 $ 37,406 $ 49,875 2,625 1,925 2,625 $ 2,625 S 1.925 $ 1,925 S 20,388 $ 32,856 S 45,325 6.728 $ 10,843 S 14,957 13,660 $ 22,014 $ 30,368 $ $ 1,925 1,925 15,585 $ 23,939 S 32,293 1,925 2025 22,000 500 2025 $ 49,500 $ 66,000 Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back depreciation Net change in cash flow Net cost of new assets Figure 4 Financial analysis of Project D Initial Expenditures Additional revenue Additional operating costs Depreciation Net increase in income Less: Tax at 33% Increase in after-tax income Add back depreciation $ Net change in cash flow (100,000) $ $55,000 (55,000) $ $ $ $ $ $ $ $ 5,000 $ $ 14,000 $ (8,000) $ $ $ $ 2021 $ $ 6,000 $ 45,000 3,000 8,000 34,000 11,220 22,780 8,000 $ $ 30,780 (8,000) $ 14,000 $ 5,000 $ 20,000 $ (3,000) $ $ $ (3,000) 20,000 17,000 2022 $ 37,500 $ $ $ $ $ $ 4,000 $ 12,000 $ 21,500 $ 7,095 14,405 $ 12,000 $ 26,405 $ $ $ $ $ $ 2023 $ 5,000 5,000 $ 17,500 $ 5,000 17,500 $ 17,500 10,500 $ 27,000 $ 43,500 3,465 $ 8,910 $ 14,355 7,035 $ 18,090 $ 29,145 17,500 $ 17,500 $ 17,500 35,590 $ 46,645 24,535 $ 10,000 $ 5,000 $ 5,500 11,000 $ 11,000 (6,000) $ (8,000) $ (6,000) $ 11,000 5,000 2024 $ $ 8,500 $ (8,000) 11,000 2025 3,000 6,500 6,000 $ $ 11,000 $ (10,500) $ $ (10,500) $ $ 11,000 500 Figure 5* Accounting information COGS Cash Depreciation Expense Interest Expense SG&A Expenses Accounts Payable Net Fixed Assets Sales Accounts Receivable Inventory Common Stock Par @ $1 Add'l Paid in Capital Preferred Equity par @ 100 Retained earnings Long term Debt $ $ $ $ $ $ $ $ $ $ $ $ GA $ 2021 forecast ?? 52,663 10,000 ??. 71,663 105,000 275,625 55,487 70,903 10,000 217,200 25,300 2020 $ ?? $ 87,000 $ 10,000 $ $ 68,250 $ $ 90,000 $ 262,500 $ 42,940 $ 52,500 $ 10,000 $ 217,200 $ 25,300 ?? $ $ $ $ $ $ 100,000 $ 250,000 $ 37,500 $ 50,000 $ 10,000 $ 217,200 $ 25,300 $ 2019 ?? $ 74,440 10,000 65,000 ?? I

Answer rating: 100% (QA)

Here are more detailed analyses of the projects and company financials Project A Analysis 2021 Initial expenditure of 25000 Additional revenue of 3655 Additional operating costs of 500 Depreciation of ... View the full answer