公司理财第九版课后案例Conch-Republic-Electronics讲解学习

1、精品文档Conch Republic Electronics Analysis精品文档Analysis of Conch Republic ElectronicsDevelop a prototype$750000Sunk costMarket study$200000The new PDA:Variable cost per unit$155Fixed cost per year$4700000Price of per unit$360Necessary equipme nt$21500000Depreciati onSeve n-year MACRSSalvage value$410000

2、0Tax rate35%Required return12%YearMACRS Perce ntageDepreciatio nSales volume114.29%:$3,072,35074000224.49%$5,265,35095000317.49%$3,760,350125000412.49%$2,685,35010500058.93%$1,919,95080000The existing model:Price per unit$290Variable cost per un it$120Fixed cost per year$1800000Sales volume of fall

3、by per year15000Price be lowered of per unit$255Sales volume for year 180000 Sales volume for year 260000There is no initial outlay for NWC; and Net Working Capital for thePDAs will be 20% of sales.The value of the equipment in five years will be $4.1 million Introducing the new PDA, it causes the e

4、xiting PDA sales fall down and the price fall dow n.Therefore: sales for year 仁74000*$360-15000*$290-(80000-15000)*($290-$255)=$20015000Variable cost for year 1=74000*$155-15000*$120=$9670000Sales for year 2=95000*$360-15000*$290-(60000-15000)*($290-$255) =$28275000Variable cost for year 2=95000*$15

5、5-15000*$120=$12925000Year12345Sales$20,015,00 0$28,275,000$45,000,000$37,800,000$28,800,00 0Variable cost$9,670,000$12,925,000$19,375,000$16,275,000$12,400,000Fixed cost$4,700,000$4,700,000$4,700,000$4,700,000$4,700,000Total cost$14,370,000$17,625,000$24,075,000$20,975,000$17,100,000Depreciation$3,

6、072,350$5,265,350$3,760,350$2,685,350$1,919,950EBIT$2,572,650$5,384,650$17,164,650$14,139,65 0$9,780,050$900,427.5$1,884,627.$6,007,627.5$4,948,877.$3,423,017.Tax05005050$1,672,222.$3,500,022.$11,157,022.$9,190,772.$6,357,032.Net income5050505050Net worki ng capital=sales*20%Project cash flow=Projec

7、t operating cash flow-Project changes in net workingcapital-project capital spe nding Operati ng cash flow=EBIT+Depreciati on-TaxesCha nge in NWC=E ndi ng NWC-Begi nningNWCYear12345Operating cash flow:$4,744,572.50$8,765,372.50$14,917,372.50$11,876,122.50$8,276,982.50net working capital$4,003,000$5,

8、655,000$9,000,000$7,560,000$5,760,000initial NWC:$0$4,003,000$5,655,000$9,000,000$7,560,000Ending NWC$4,003,000$5,655,000$9,000,000$7,560,000$0Change in NWC$4,003,000$1,652,000$3,345,000($1,440,000)($7,560,000)NET Cash flow$741,572.50$7,113,372.50$11,572,372.50$13,316,122.5015836982.5The book value

9、of equipment after the depreciation=$21500000-$3,072,350 - $5,265,350-$3,760,350-$2,685,350-$1,919,950=$4796650Pretax salvage value of equipme nt=$4100000After-tax cash flow of equipme nt=$4100000+($4796650-$4100000)*35%=$4343827.5YearCash flow0($21,500,000.00)1$741,572.502$7,113,372.503$11,572,372.

10、504$13,316,122.505$20180810Parti1 What is the payback period of the project?YearCash flowRemainingPV0 :($21,500,000.00)1$741,572.50($20,758,427.50)$662,118.302$7,113,372.50($13,645,055.00)$5,670,737.013 1$11,572,372.50($2,072,682.50)$8,236,986.174$13,316,122.50$11,243,440.00$8,462,636.585$20180810$1

11、1,451,133.56Payback period=3+ ($13,316,122.50-$11,243,440.00)/ $13,316,122.50=3.16 years2. What is the profitability index of the project?PI= (the present value of the future cash flow)/(initial investment)PV of the future cash flow=$662,118.30+$5,670,737.01+$8,236,986.17 +$8,462+$11,451,133.56=$34,

12、483,611.62Pl=$34,483,611.62 /$2150000=1.603. What is the IRR of the project?IRR is the return that makes the NPV=0.Therefore:NPV=0=-$21500000+($741,572.50/(1+IRR)A1)+($7,113,372.50 /(1+IRR)A2)+ ($11,572,372.50/(1+IRR)A3)+ ($13,316,122.50心+IRRF4) ($20180810 / (1+IRR) A5)Use the EXCEL we can get the I

13、RR=27.62%4. What is the NPV of the project?NPV=-$21500000+$662,118.30+$5,670,737.01+$8,236,986.17+$8,462,636.58 +$11,451,133.56=$12,983,611.62Part25. How sensitive is the NPV to change in the price of the new PDA?We suppose the price in crease $10, so the price will be$370 per unitTherefore:Year1234

14、5Sales$20,755,000$29,225,000$46,250,000$38,850,000$29,600,000Variable cost$9,670,000$12,925,000$19,375,000$16,275,000$12,400,00 0Fixed cost$4,700,000$4,700,000$4,700,000$4,700,000$4,700,000Total cost$14,370,00 0$17,625,000$24,075,000$20,975,000$17,100,000Depreciation$3,072,350$5,265,350$3,760,350$2,

15、685,350$1,919,950EBIT$3,312,650$6,334,650$18,414,650$15,189,650$10,580,050$1,159,427.$2,217,127.$6,445,127.5$5,316,377.$3,703,017.Tax505005050$2,153,222.$4,117,522.$11,969,522.$9,873,272.$6,877,032.Net income5050505050Year12345Operating cash$5,225,57$9,382,87$15,729,87$12,558,62$8,796,982.flow2.502.

16、502.502.5050net working capital$4,151,00 0$5,845,00 0$9,250,000$7,770,000$5,920,000initial NWC$0$4,151,00 0$5,845,000$9,250,000$7,770,000Ending NWC$4,151,00 0$5,845,00 0$9,250,000$7,770,000$0Change in$4,151,00$1,694,00($1,480,000($7,770,000NWC00$3,405,000)-)$1,074,57$7,688,87$12,324,87$14,038,62$16,

17、566,98NET Cash flow2.502.502.502.502.50YearCash flowPV0($21,500,000.00)1$1,074,572.50$959,439.732$7,688,872.50$6,129,522.083$12,324,872.50$8,772,600.804$14,038,622.501$8,921,798.395$20,910,810.00：$11,865,355.17NPV二$21500000+$959,439.73+$6,129,522.08+$8,772,600.80+$8,921,798.39+$11,865,355.17=$15,148

18、,716.18Therefore:The coefficient of price sensitive= ($15,148,716.18 -$12,983,611.62)/ ($370-$360)=$216510.46From the coefficient of the price sensitive, we can know that if the price increase $1,the NPV increase S216510.46.6. How sensitive is the NPV to change in quantity sold of the New PDA?We sup

19、pose the qua ntity in crease 1000 per year.Therefore:Year12345Sales$20,375,000$28,635,000$45,360,000$38,160,000$29,160,000Variable cost$9,825,000$13,080,000$19,530,000$16,430,00 0$12,555,00 0Fixed cost$4,700,000$4,700,000$4,700,000$4,700,000$4,700,000Total cost$14,525,00 0$17,780,000$24,230,000$21,1

20、30,000$17,255,000Depreciation$3,072,350$5,265,350$3,760,350$2,685,350$1,919,950EBIT$2,777,650$5,589,650$17,369,650$14,344,65 0$9,985,050$972,177.5$1,956,377.$6,079,377.5$5,020,627.$3,494,767.Tax05005050$1,805,472.$3,633,272.$11,290,272.$9,324,022.$6,490,282.Net income5050505050Year12345Operating cas

21、h$4,877,82$8,898,62$15,050,62$12,009,37$8,410,232.flow2.502.502.502.5050net working$4,075,00$5,727,00$9,072,000$7,632,000$5,832,000capital00initial NWC$0$4,075,000$5,727,000$9,072,000$7,632,000Ending NWC$4,075,00 0$5,727,000$9,072,000$7,632,000$0Change in$4,075,00$1,652,00($1,440,000($7,632,000NWC00$3,345,0