Year 0

Material Cost per Unit

Units per Year

Revenue
Labor Expense
Material Expense
Facility Expense
Equipment Expense
Income from Operations
D&A
Salary Expense
Depreciation Tax Shield
EBIT
Taxes
EBIAT
D&A
Capital Expenditures
Change in Working Capital
Free Cash Flow
Difference in CF

Year 0
10,000,000
3,000,000
7,000,000
7,000,000
2,450,000
4,550,000
4,550,000

Year 1
0.50
3,000,000

Year 2
0.52
###

Year 3
0.53
3,000,000

Year 1
10,000,000
200,000
1,500,000
100,000
8,200,000
600,000
165,000
210,000
7,225,000
2,528,750
4,696,250
600,000
5,296,250

Year 2
###
210,000
1,545,000
100,000
###
8,145,000
600,000
173,250
210,000
7,161,750
2,506,613
4,655,138
600,000
###
###
5,255,138

Year 3
10,000,000
220,500
1,591,350
100,000
8,088,150
600,000
181,913
210,000
7,096,238
2,483,683
4,612,554
600,000
5,212,554

746,250

(41,113)

(42,583)

Year 4
0.55
2,000,000

Year 4
10,000,000
231,525
1,092,727
100,000
8,575,748
600,000
191,008
210,000
7,574,740
2,651,159
4,923,581
600,000
5,523,581
311,027

Year 5
0.56
1,000,000

Year 5
###
243,101
562,754
100,000
9,094,144
600,000
200,559
210,000
8,083,586
2,829,255
5,254,331
600,000
5,854,331
330,750

Year 6
0.58
500,000

Year 7
0.60
###

Year 6
10,000,000
255,256
289,819
100,000
9,354,925
600,000
210,586
210,000
8,334,339
2,917,019
5,417,320
600,000
6,017,320

Year 7
###
268,019
298,513
100,000
9,333,468
600,000
221,116
210,000
8,302,352
2,905,823
5,396,529
600,000
130,000
6,126,529

162,989

109,209