Question: I need to build a sensitivity chart for a chase and am having trouble with percentages... NPV is ( 8 years) I am trying to
I need to build a sensitivity chart for a chase and am having trouble with percentages...
NPV is ( 8 years) I am trying to upload my chart but it is not letting me : (
| Model CTX-13 | Year: | 0 | ||
| Inputs | Base Case | |||
| Equipment Cost | $ 17,000,000 | Investment: | $ (17,000,000) | |
| Depreciation Per Year | MARCS | |||
| Units Sold Every Year | 40,500 | |||
| Sales price per unit, Year 1 | $ 9,200 | Sales | ||
| Annual change in sales price, after Year 1 | 3.0% | |||
| Labor costs per unit (VC), Year 1 | $ 4,250.00 | Expenses: | ||
| Part costs per unit (VC), Year 1 | $ 2,500.00 | VC | ||
| CTX Controller Costs per unit (VC), Year 1 | $ 1,260.00 | Labor Costs | ||
| Warranty cost per unit (VC), Year 1 | $ 714.00 | Parts Costs | ||
| Annual change in VC, after Year 1 | 3.0% | Controller Costs | ||
| Fixed Cost (FC), Year 1 | $ 9,500,000 | Warranty Costs | ||
| Annual change in FC, after Year 1 | 3.0% | FC | ||
| Project WACC | 9.26% | Depreciation | ||
| Tax Rate | 35.0% | Net Earnings BT | ||
| Working Capital as % of next year's sales | 10.0% | |||
| Tax (35%) | ||||
| Net Income | ||||
| Depreciation | ||||
| NOWC | $ (37,260,000) | |||
| Net Cash Flow | $ (54,260,000) | |||
| DCF | $69,048,262 | |||
| NPV | $ 14,788,262 | |||
| IRR | 14.15% | |||
| Profitabilty Index | 0.27 | |||
| Payback Years | 6.31 | |||
| $ 17,540,341 |
| Sensitivity Analysis: Base Case | Sales Price | MC | WACC | ||
| Sales Price per Unit: +/- 10%, 20%, 30% | NPV | -30% | |||
| Variable Cost per Unit: +/- 10%, 20%, 30% | NPV | -20% | |||
| Units Sold: +/- 10%, 20%, 30% | NPV | -10% | |||
| NPV | 0% | ||||
| Sales price is 9200 | NPV | +10% | |||
| MC 4250 | NPV | +20% | |||
| WACC 9.26 | NPV | +30% | |||
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