Solution
David answered on
Nov 25 2019
Sheet1
Rate 16%
Capital cost $1,650,000
Salvage $10,000 Base-case Worst-case Best-case
Revenue $1,589,500 Revenues 10% 6% 15%
Staff $954,000 Costs (other than depreciation) 6% 10% 3%
Material cost $222,600
Marketing $48,760 Tax rate 30%
Other cost $26,500
Year 0 1 2 3 4 5 6 7 8
Capital cost ($1,650,000)
Revenue $1,748,450 $1,748,450 $1,748,450 $1,748,450 $1,748,450 $1,748,450 $1,748,450 $1,748,450
Staff $1,011,240 $1,011,240 $1,011,240 $1,011,240 $1,011,240 $1,011,240 $1,011,240 $1,011,240
Material cost $235,956 $235,956 $235,956 $235,956 $235,956 $235,956 $235,956 $235,956
Marketing $51,686 $51,686 $51,686 $51,686 $51,686 $51,686 $51,686 $51,686
Other cost $28,090 $28,090 $28,090 $28,090 $28,090 $28,090 $28,090 $28,090
Depreciation 205000 205000 205000 205000 205000 205000 205000 205000
Income before...