Scribd Logo
Upload

Welcome to Scribd!

  • BreakOut 9 Sample Problem

    Uploaded by

    rishabh tyagi
    17 views4 pages
    The document contains details of a 4 year project including development costs, ramp-up costs, marketing costs, production volumes, unit costs, sales volumes, unit prices, sales values, net cash flows, and NPV calculations for Part A,B,C and Part D. In Part A,B,C the NPV is ₹1,332,745 and in Part D the NPV is ₹2,862,597. It provides production and sales estimates for 4 years with costs like development, marketing, and production costs and calculates the net cash flow and NPV for each part.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document contains details of a 4 year project including development costs, ramp-up costs, marketing costs, production volumes, unit costs, sales volumes, unit prices, sales values, net cash flows, and NPV calculations for Part A,B,C and Part D. In Part A,B,C the NPV is ₹1,332,745 and in Part D the NPV is ₹2,862,597. It provides production and sales estimates for 4 years with costs like development, marketing, and production costs and calculates the net cash flow and NPV for each part.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    17 views4 pages

    BreakOut 9 Sample Problem

    Uploaded by

    rishabh tyagi
    The document contains details of a 4 year project including development costs, ramp-up costs, marketing costs, production volumes, unit costs, sales volumes, unit prices, sales values, net cash flows, and NPV calculations for Part A,B,C and Part D. In Part A,B,C the NPV is ₹1,332,745 and in Part D the NPV is ₹2,862,597. It provides production and sales estimates for 4 years with costs like development, marketing, and production costs and calculates the net cash flow and NPV for each part.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    OM Break Out Room 9

    Adhithya PGP/24/190
    Vidhi PGP/24/191
    Mukul PGP/24/221
    Poojita PGP/24/228
    Rishabh PGP/24/235

    Assumptions:
    All cash flows are at the end of the year.
    Dvelopment cost is equally spread in both the years.

    Part A,B,C Discount Rate 12%


    Sales Estimate 100%
    Production Estimate 100%
    Unit Production Cost 75

    Year
    1 2 3 4
    Development Cost (1,000,000) (1,000,000)
    Ramp-up Cost (750,000)
    Marketing and Support (500,000) (500,000) (500,000)

    Production Volume 40,000 50,000


    Unit Cost 75 75
    Production Cost 3,000,000 3,750,000

    Sales Volume 40,000 50,000


    Unit Price 135 135
    Sales Value 5,400,000 6,750,000

    Net Cash Flow (1,000,000) (2,250,000) 1,900,000 2,500,000

    NPV ₹ 1,332,745

    Part D Year
    1 2 3 4
    Development Cost (2,500,000)
    Ramp-up Cost (750,000)
    Marketing and Support (500,000) (500,000) (500,000)

    Production Volume 48,000 60,000 50,000


    Unit Cost 75 75 75
    Production Cost 3,600,000 4,500,000 3,750,000
    Sales Volume 48,000 60,000 50,000
    Unit Price 135 135 135
    Sales Value 6,480,000 8,100,000 6,750,000

    Net Cash Flow (2,500,000) 1,630,000 3,100,000 2,500,000

    NPV ₹ 2,862,597
    5

    (500,000)

    40,000
    75
    3,000,000

    40,000
    135
    5,400,000

    1,900,000

    You might also like