Compusell practice case.DGTI
Red RENUTEGApuntes7 de Agosto de 2022
771 Palabras (4 Páginas)100 Visitas
Universidad Autónoma de Querétaro[pic 1]
Facultad de Contaduría y Administración
Suppose you are a manager in the personal computer division of Compusell Corporation, a large firm that manufactures many different types of computers. You come up with an idea for a new type of personal computer, which you call the FCA3000. You may be able to develop a prototype of the FCA3000 end even test market it for relatively little money and, therefore, you don´t bother doing a full-fledged discounted cash flow analysis in the early phases of the project.
If your project idea gets to the point at which a large sum of cash must be expended, then you must prepare a capital appropriation request that detail the amount of capital required and the projected benefits to the corporation from undertaking the project. The next table show the estimated operating cost (fixed & variable).
Costs | Amount (usd) |
Advertising Expense | $600,000 |
Utilities services | 500 |
Direct labor | 8,000,000 |
Packaging | 150 |
Rent expense | 200,000 |
Administration | 800,000 |
Sales person (Commission expense) | 400 |
Raw material | 1,000 |
Selling expenses | 350,000 |
Lease payment | 1,500,000 |
Energy cost | 300 |
Other fixed cost | 250,000 |
Depreciation | |
Interest expense |
Your estimates assume that the sales will be 4,000 units per year at a price of $6,500 per unit. A new production facility will be leased for $ 1.5 million per year and production equipment will have to be purchased at a cost of about 4.8 million. The equipment will be depreciated over five years using the straight-line method with a 15% of salvage value. In addition, you estimate a need for $4.2 million for working capital –primarily to finance inventories- thus bringing the total initial outlay required to $ 9 million.
The investment was financed with a bank loan at 12% per year to pay on 10 years. The MAC (Maximum Assets Capacity) is 5,000 units per year. Assume a 30% tax rate for all income and 10% of employed benefits.
Make the income statement projections for the next five years:
5 POINTS value:
- What is the cash flow of each period?
PERIODO 1 | PERIODO 2 | PERIODO 3 | PERIODO 4 | PERIODO 5 |
$ 2,482,886.18 | $ 2,517,497.19 | $ 2,556,497.74 | $ 2,600,444.54 | $ 2,649,964.89 |
- What is the project’s NPV at free risk rate?
VPN | $ 7,615,822.33 |
- What is the IRR of this project?
TIR | 13% |
- What is the selling price for to get a IRR= 35%
PRECIO | $ 7,182.5 |
5 POINTS value:
- What is de payback period for 20% and 30% discount rates?
- El payback para una tasa de descuento del 20% es de 7.43 periodos, es decir en 7 años y cinco meses
- A una tasa del 30% no es posible recuperar la inversión ya que después de 76 periodos el VPN del flujo de efectivo tiende a cero y aun en este periodo no se ha recuperado la inversión
- Is a good financial project?. Explain.
No es un buen proyecto porque la TIR es menor que la tasa libre de riesgo (20%), para que el proyecto fuera viable tendría que tener una tasa de libre riesgo menor a 12%, sin embargo al plantear los posibles panoramas se convierte en un proyecto viable.
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