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Book Value Gadget Division Worksheet

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Gadget Division - UDA Proposal Machinery Costs ($) Modification Costs ($) Plant & Properties Opportunity Costs ($) Salvage Value - Plant ($) Salvage Value - Machinery ($) $ $ $ $ Cost of Capital (%) Tax Rate (%) Positive side effect Operating Cash Flow ($) 120,000,000 15,000,000 20,000,000 12,000,000 0 $ 15% 21% 21,000,000 Annual Sales Volume (units) Unit Price ($) Unit Production Costs ($) $ $ YEAR 1 2,300,000 650.00 520.00 Incremental Revenues ($) Incremental Costs ($) After Tax Incremental R-C ($) Tax Savings on Incre. Depreciation ($) $ 1,495,000,000 $ 1,196,000,000 $ 236,210,000 $ 9,449,055 INCREMENTAL OPERATING CASH FLOWS, OCF ($) $ 245,659,055 POSITIVE SIDE EFFECT OPERATING CASH FLOW ($) $ 21,000,000 $ $ 83,720,000 83,720,000 (150,800,000) $ 182,939,055 BASE SCENARIO (Tax Shield Approach for OCF) Initial Cash outflow ($) Net Working Capital ($) CHANGE in NET WORKING CAPITAL ($) $ $ 150,800,000 - TERMINAL CASH FLOW ($) INCREMENTAL CASH FLOW TO PROJECT ($) NET PRESENT VALUE, NPV ($) $ $223,861,773.87 Gadget Division - UDA Proposal Machinery Costs ($) Modification Costs ($) Plant & Properties Opportunity Costs ($) $ $ $ 120,000,000 15,000,000 20,000,000 Salvage Value - Plant and Machinery ($) $ 15,000,000 $ 15% 21% 21,000,000 Annual Sales Volume (units) Unit Price ($) Unit Production Costs ($) $ $ YEAR 1 2,300,000 650.00 520.00 Incremental Revenues ($) Incremental Costs ($) After Tax Incremental R-C ($) Tax Savings on Incre. Depr ...
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