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    Sneaker 2013 Projected Cash Flow Statements

    Uploaded by

    Anisa Kodra
    The document summarizes the projected cash flow statement for a sneaker company's 2013 project. It shows that the project is expected to result in a net loss for the company each year from 2012-2018. Both the net present value and internal rate of return calculations indicate that the project would not be profitable and the company should not pursue it. The cash flow projections and calculations demonstrate that the sneaker project would not generate positive cash flows or returns above the cost of capital.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Sneaker 2013 Projected Cash Flow Statements

    Uploaded by

    Anisa Kodra
    36 views9 pages
    The document summarizes the projected cash flow statement for a sneaker company's 2013 project. It shows that the project is expected to result in a net loss for the company each year from 2012-2018. Both the net present value and internal rate of return calculations indicate that the project would not be profitable and the company should not pursue it. The cash flow projections and calculations demonstrate that the sneaker project would not generate positive cash flows or returns above the cost of capital.

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    The document summarizes the projected cash flow statement for a sneaker company's 2013 project. It shows that the project is expected to result in a net loss for the company each year from 2012-2018. Both the net present value and internal rate of return calculations indicate that the project would not be profitable and the company should not pursue it. The cash flow projections and calculations demonstrate that the sneaker project would not generate positive cash flows or returns above the cost of capital.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    36 views9 pages

    Sneaker 2013 Projected Cash Flow Statements

    Uploaded by

    Anisa Kodra
    The document summarizes the projected cash flow statement for a sneaker company's 2013 project. It shows that the project is expected to result in a net loss for the company each year from 2012-2018. Both the net present value and internal rate of return calculations indicate that the project would not be profitable and the company should not pursue it. The cash flow projections and calculations demonstrate that the sneaker project would not generate positive cash flows or returns above the cost of capital.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 9

    Sneaker 2013 Projected Cash Flow S

    2012 2013
    New Factory (CAPEX) $ -
    Equipment (plus Freight & Installation) $ -
    Revenues $ -
    Cannibalization (Erosion) $ -
    Net Revenues (after Erosion) $ -
    Variable Costs $ -
    S G & A Expenses $ -
    Endorsement $ -
    Other Ad & Promotion $ -
    Factory Dep (39 yr MACRS) $ -
    Equipment (plus Freight & Installation) Dep (5 Y MACRS $ -
    EBIT $ -
    Taxes $ -
    Earnings Bef Int After Taxes $ -
    Add back Fac Dep $ -
    Add back Equip, Fr, Instl Dep $ -
    Operating Cash Flows $ -
    Change in NWC $ - $ -

    New Factory (CAPEX) $ -


    Equipment (plus Freight & Installation) $ -
    Operating Cash Flows 0 0
    Change in NWC $ - $ -
    Project NET CASH FLOWS $ - $ -

    Criteria Use Excel Fn Decision


    NPV $ - The project is expected to result in a net loss f
    IRR Err:523 The IRR is lower than the cost of capital, the ru

    NWC 100 120


    Change in NWC -100 -20
    aker 2013 Projected Cash Flow Statements
    2014 2015 2016 2017

    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    0 0 0 0
    $ - $ - $ - $ -
    $ - $ - $ - $ -

    s expected to result in a net loss for the company. As a result, and according to the rule, the company should not pursue the project.
    wer than the cost of capital, the rule declares that the best course of action is to forego the project or investment.

    169 300 250 159


    -49 -131 50 91
    CA - CL
    Cash
    A/P

    After Tax SV of Factory


    After Tax SV of Equip, Fr, Inst)

    2018
    $ 106,140,000.00 Terminal val = After Tax SV of Factory
    $ 1,800,000.00 Terminal val = After Tax SV of Equip, Fr, Inst)
    $ -
    $ -
    $ -
    $ -
    $ -
    $ - Y0
    $ - BV Factory $ -
    $ -
    $ - Y0
    $ - BV Equipment, Fr, Inst $ -
    $ -
    $ -
    $ - Y0
    $ - A/R
    $ - Inventory $ -
    $ - A/P $ -
    NWC (CA - CL) $ -
    Change in NWC - Cash Impact (Spending) $ -
    $ -
    $ -
    0
    $ -
    $ -

    the company should not pursue the project.


    he project or investment.

    159 0
    Equity

    A/R Inv

    $ 106,140,000.00 SV - (SV-BV)*Tc
    $ 1,800,000.00 SV - (SV-BV)*Tc

    39 Yr MACRS Dep %
    Yr 1 Yr 2 Yr 3 Yr 4
    2.60% 5.00% 4.70% 4.50%
    5 Yr MACRS Dep %
    Yr 1 Yr 2 Yr 3 Yr 4
    20% 32% 19.20% 11.52%

    Yr 1 Yr 2 Yr 3 Yr 4
    $ - $ - $ - $ -

    Yr 1 Yr 2 Yr 3 Yr 4
    $ - $ - $ - $ -

    Calculation of Change in NWC


    Yr 1 Yr 2 Yr 3 Yr 4
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    $ - $ - $ - $ -
    Yr 5 Yr 6
    4.30% 4.00%

    Yr 5 Yr 6
    11.52% 5.76%

    Yr 5 Yr 6
    $ - $ -

    Yr 5 Yr 6
    $ - $ -

    Yr 5 Yr 6
    $ - $ -
    $ - $ -
    $ - $ -
    $ - $ - Sum of Change in NWC
    $ - $ - $ - Should add up to zero (Formula is inputed)
    d up to zero (Formula is inputed)

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