Question: Years for Analysis 4 Beginning Year 2021 First Unit Units 74,500,000 First Year Sales Price/Unit $8.64 Annual Unit Growth (2022-2024) 0% Unit Price Increase (2022-2024)
| Years for Analysis | 4 | ||||
| Beginning Year | 2021 | ||||
| First Unit Units | 74,500,000 | ||||
| First Year Sales Price/Unit | $8.64 | ||||
| Annual Unit Growth (2022-2024) | 0% | ||||
| Unit Price Increase (2022-2024) | 0% | ||||
| 2021 | 2022 | 2023 | 2024 | ||
| Cost/Unit | 60% | 60% | 60% | 60% | |
| Tax Rate | 32.50% | ||||
| Fixed Costs | $3,650,000 | ||||
| Depreciation | $1,200,000 | ||||
| USD per 1 Euro | 2021 | $1.00 | |||
| 2022 | $1.00 | ||||
| 2023 | $1.00 | ||||
| 2024 | $1.00 | ||||
| Cost of Capital | 10.25% |
Prepare a "Baseline" Capital Budget analysis, calculating the Net Present Value of the operation. Note, the operation is in the U.S. and it's "parent "is in Germany. Thus, the final numbers should be in Euros.
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