Acc 370 Caledonia Exercise, Part 3 and 4

3. What is the projects initial outlay? The projects initial outlay is the capital of the essence(p) to purchase the congeal and equipment, plus the shipping and introduction of the represent and the initial working capital needed to start the fruit. Therefore, the initial outlay for the project is: Cost of the new equipment 7,900,000 Shipping and evocation 100,000 Initial working capital required to start action 100,000 $8,100,000 $8,100,000 is the initial outlay for the new project. 4. Sketch out a cash mix diagram for this project.

Caledonia coin stop socio-economic association 1 family 2 Year 3 Year 4 Year 5 Units Sold 70,000 120,000 140,00 0 80,000 60,000 Projected Revenues 21,000,000 36,000,000 42,000,000 24,000,000 15,600,000 (-) COGS 12,600,000 21,600,000 25,200,000 14,400,000 10,800,000 (-) sack (15%) 3,150,000 5,400,000 6,300,000 3,600,000 2,340,000 (=) blunt Profit/( Loss) 5,250,000 9,000,000 10,500,000 6,000,000 2,460,000 (-) Annual Fixed Cost 200,000 200,000 200,000 200,000 200,000 (-) depreciation ( 8,000,000 / 5) 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 (=) straighten out Operating Profit/ (Loss) 3,450,000 7,200,000 8,700,000 4,200,000 660,000 (-) Taxes (34%) 1,173,000 2,448,000 2,958,000 1,428,000 224,400 (=) NOPAT 2,277,000 4,752,000 5,742,000 2,772,000 435,600 (+) Depreciation 1,600,000 1,600,000 1,600,000 1,600,000 1,600,000 (=) Operating Cash Flow 3,877,000 6,352,000 7,342,000 4,372,000 2,035,600 The following graph shows the above cash flow:If you demand to get a full essay, order it on our website: OrderEssay.net

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