Maket demand of cinema ticket

QD Price of ticket
- $ 50
10 $ 40
20 $ 30
30 $ 20
40 $ 10
50 $ -
QD= -p+ 50
QD2= -p+40
QD3= -p+60
Price of ticket QD2 QD1
60 - -
50 - -
40 0 10
30 10 20
20 20 30
10 30 40
0 40 50
20
30
40
50
60
70
P

Shift in the market demand for cinema ticket
U.S
Income tax rate 40%
Revenue (1000 units) TR TR=Q*P=1000*750 750,000
Input 500000
Cost of production TC= 10000*10+1000 11,000
Gross profit Pr= TR-TC 739,000
Operating expenses //
Profit before taxes 739,000
Income taxes Ci Ci=Pr*40% 295,600
Profit after taxes 443,400
Combined result Taxes
Profit
Income tax rate 40%
Revenue (1000 units) TR
US
=Q*P=1000*750 750,000
Cost of production TC
US
= 10000*10+1000 11,000
Profit before taxes Pr
US
= TR
US
-TC
US
739,000
Income taxes Ci Ci
US
=Pr
US
*40% 295,600
Profit after taxes
For each market
Tax Combined result
U.S
443,400
-
10
20
0 10 20 30
QD3
Price of
ticket
0
10 $ 10 50
20 40 40
30 30 30
40 50 20
50 10
60 0
$-
$10
$20
$30
$40
$50
$60
- 10 20 30 40
Series1
$-
$10
$20
$30
$40
$50
$60
- 20 40 60
Q
Market demand of
cinema ticket
QD
0
10
20
30
40
50
60
$- $5 $10 $15
Axis Title
Shift in the market demand for cinema ticket
QD2
QD1
QD3
Country M
20%
TR=Q*P=500*1000 500,000
TC= FC+VC= 10000+325 10,325
489,675
//
489,675
Ci=Pr*20% 97,935
391,740
335,140
835,140
20%
TR
M
=Q*P=600*1000 600,000
TC
M
= FC+VC= 10000+325 10,325
Pr
M=
TR
M
- TC
M
589,675
Ci
M
=Pr*20% 117,935
315,140
Country M
471,740
Axis Title
40 50 60 70
Q
QD3
#REF!
#REF!
#REF!
Machine A Machine B Machine C
15,000.00 $ 22,500.00 $ 37,500.00 $
Cash In Flow Year 1 6,000.00 $ 12,000.00 $ - $ 10,500.00 $
Cash In Flow Year 2 9,000.00 $ 12,000.00 $ 30,000.00 $ 750.00 $
=0 at the end of
Second years years
= 0 at the time
1.88 year
Cash In Flow Year 3 3,000.00 $ 10,500.00 $ 30,000.00 $ 0.25
= 0 at the time 3.25 year
Cash In Flow Year 4 - $ 10,500.00 $ 15,000.00 $
Cash In Flow Year 5 - $ - $ 15,000.00 $
Depreciation-Old
Helicopter
Investment
depreciation
Value 350000 60,000 $
Year 1 20% 70000 13,500 $
Year 2 32% 112000 13,500 $
Year 3 19.20% 67200 13,500 $
Year 4 11.52% 40320 13,500 $
Year 5 11.52% 40320 6,000 $
Year 6 5.76% 20160
42000
288000
Depreciation-New Helicopter
(using the 5-year MACRS schedule)
1,500.00 $ 125.00 $
0.88 $
Year 0 Year 1 Year 2 Year 3
Value of New helicopter 350,000.00 $
Depreciation-New
Helicopter 20% 32% 19.20% 11.52%
Depreciation-New
Helicopter
(using the 5-year MACRS
schedule) 70,000 $ 112,000 $ 67,200 $ 40,320 $
Depreciation-Old
Helicopter 13,500 $ 13,500 $ 13,500 $
Investment depreciation 70,000 $ 98,500 $ 53,700 $ 26,820 $
Total Depreciation Tax
Shield 23,800 $ 33,490 $ 18,258 $ 9,119 $
Year 0 Year 1 Year 2 Year 3
Value of New helicopter 350,000.00 $
Cash from sellling old
helicopter 68000
Cash from buying new
helicopter (350,000) $ (350,000) $ (350,000) $ (350,000) $
Cash from saving fuel 62,000 $ 62,000 $ 62,000 $
Year 4 Year 5
11.52% 5.76%
40,320 $ 20,160 $
13,500 $
26,820 $ 20,160 $
9,119 $ 6,854 $
Year 4 Year 5
(350,000) $ (350,000) $
62,000 $ 62,000 $
Probability Cash Flow
0.15 60,000 9,000
0.25 85,000 21,250
0.45 110,000 49,500
0.15 130,000 19,500
Total Expect cash flow 99,250
Out Comes Probability of Outcome Assumption
5,250 $ 25% pessimistic
7,800 $ 45% moderarely successful
13,500 $ 30% optimistic
0 1 2 3 4 5 6 7 8
Free cash flow -625000 99,250 99,250 99,250 99,250 99,250 99,250 99,250 99,250
Project cost of capital 10%
Discount factor 1 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467
PV of Free cash flow -625000 90227 82025 74568 67789 61626 56024 50931 46301
Salvage value 50000
NPV 34848
Year
9 10
99,250 99,250
0.424 0.386
42092 38265
Year
Probabilit
y
Cash
flow
R1
Probabilit
y
Cash
flow
R2
3.33% 400 13.33 5% 300 15
90.00% 500 450.00 5% 500 25
6.67% 700 46.67 90% 700 630
510 670
0.25 500 125 0.3 300 90
0.5 600 300 0.5 500 250
0.25 700 175 0.2 700 140
600 480
Expected Value
Year 0 Year 1 Year 2
-1,000
R
k = 0.07
61.83946196
-20.00174688