Solution
Abr Writing answered on
May 13 2020
Bathrust city
Year 0 1 2 3 4 5 6 7 8 9 10
Initial investment $ -27,500,000
$ -8,000,000
Net revenue $ 30,000,000 $ 33,000,000 $ 36,300,000 $ 39,930,000 $ 43,923,000 $ 48,315,300 $ 53,146,830 $ 58,461,513 $ 64,307,664 $ 70,738,431
Cost of goods sold $ 21,000,000 $ 23,100,000 $ 25,410,000 $ 27,951,000 $ 30,746,100 $ 33,820,710 $ 37,202,781 $ 40,923,059 $ 45,015,365 $ 49,516,902
Oppurtunity cost
SG&A
Depreciation $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000 $ -1,420,000
Operating profit $ 10,420,000 $ 11,320,000 $ 12,310,000 $ 13,399,000 $ 14,596,900 $ 15,914,590 $ 17,364,049 $ 18,958,454 $ 20,712,299 $ 22,641,529
Tax $ 3,126,000 $ 3,396,000 $ 3,693,000 $ 4,019,700 $ 4,379,070 $ 4,774,377 $ 5,209,215 $ 5,687,536 $ 6,213,690 $ 6,792,459
Operating profit after tax $ 7,294,000 $ 7,924,000 $ 8,617,000 $ 9,379,300 $ 10,217,830 $ 11,140,213 $ 12,154,834 $ 13,270,918 $ 14,498,610 $ 15,849,070
Depreciation add...