Question: Build a 5 year capital budget based on most likely assumptions . Calculate: Investment: price, quantity, revenue, expenses, salaries, supplies, depreciation, total expense, net income,
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% |
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Here is the 5year capital budget based on the most likely assumptions Year 1 Investment 10000 price x 2400 quantity 240000 Revenue 240000 investment x ... View full answer
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