Long description
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|---|---|---|---|---|---|
Revenues (15,000 units * $200) |
$3,000,000 |
$3,000,000 |
$3,000,000 |
$3,000,000 |
$3,000,000 |
Less: Variable cost ($150 per unit) |
(2,250,000) |
(2,250,000) |
(2,250,000) |
(2,250,000) |
(2,250,000) |
Less: Depreciation expense |
$ (90,000) |
$ (90,000) |
$ (90,000) |
$ (90,000) |
$ (90,000) |
Less: Cash fixed cost |
(285,000) |
(285,000) |
(285,000) |
(285,000) |
(285,000) |
Net operating income (NOI) |
375,000 |
375,000 |
375,000 |
375,000 |
375,000 |
Less: Taxes (tax rate equals 30%) |
(112,500) |
(112,500) |
(112,500) |
(112,500) |
(112,500) |
Net operating profit after tax (NOPAT) |
$262,500 |
$262,500 |
$262,500 |
$262,500 |
$262,500 |
Plus: Depreciation expense |
90,000 |
90,000 |
90,000 |
90,000 |
90,000 |
Less: Increase ... |
Get Financial Management: Principles and Applications, 13/e now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
