Base case Revenue

Diamond 554
Platinum 252
Gold 103
Silver 55
COGS 675
Annual Marketing C 80
Inflation 3%
Tax 38%
Discount Rate 12%

Upside Costs
New Product Development 1,028,857
Markerting Cost for new product 1,227,018

Upside Revenues
Expected Best Worst
Year 1 3% 5% 0%
Year 2 5% 8% 0%
Year 3 8% 15% 0%
Base Case Year 1 Year 2 Year 3
Diamond 554 570.62 587.74 605.37
Platinum 252 259.56 267.35 275.37
Gold 103 106.09 109.27 112.55
Silver 55 56.65 58.35 60.10
Total Revenue 964 993 1,023 1,053
COGS 675 675.00 695.25 716.11
Gross Profit 289 318 327 337
Annual Marketing Costs 80 82 85 87
EBIT 369 236 243 250
TAX 140.22 89.50 92.18 94.95
NET Profit
Base Cash Flow 146.02 150.40 154.92
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Base case Revenue
Diamond 1,008,577
Platinum 285,022
Gold 384,238
Silver
COGS 1,328,190
Annual Marketing Costs 500,000
Inflation 5%
Tax 20%
Discount Rate 8%

Upside Costs
New Product Development 1,028,857
Markerting Cost for new product 1,227,018

Upside Revenues
Expected Best Worst
Year 1 3% 5% 0%
Year 2 5% 8% 0%
Year 3 8% 15% 0%
Base Case Year 1 Year 2 Year 3
Diamond 1,008,577 1,059,005.85 1,111,956.14 1,167,553.95
Platinum 285,022 299,273.10 314,236.76 329,948.59
Gold 384,238 403,449.90 423,622.40 444,803.51
Silver - - - -
Total Revenue 1,677,837 1,761,729 1,849,815 1,942,306
COGS 1,328,190 1,328,190 1,328,190 1,328,190
Gross Profit 349,647 433,539 521,625 614,116
Annual Marketing Costs 500,000 500,000 500,000 500,000
EBIT -150,353 -66,461 21,625 114,116
TAX -30,071 -13,292 4,325 22,823
NET Profit
Base Cash Flow -53,169 17,300 91,293
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From the below given information about the cash flows of a company, create a template in Excel and compute the ROMI.
On the basis of the calculated values comment on the profitability of the project under different scenarios.

Base case Revenue

Patato chips 1,008,577
Nachos 285,022
Popcorns 384,238
COGS 1,328,190
Annual Marketing Costs 500,000
Inflation 5%
Tax 20%
Discount Rate 8%

Upside Costs
New Product Development 1,028,857
Markerting Cost for new product 1,227,018

Upside Revenues
Expected Best Worst
Year 1 3% 5% 0%
Year 2 5% 8% 0%
Year 3 8% 15% 0%
mplate in Excel and compute the ROMI.
der different scenarios.

Base Case Year 1 Year 2 Year 3

Patato chips 1,008,577 1,059,005.85 1,111,956.14 1,167,553.95
Nachos 285,022 299,273.10 314,236.76 329,948.59
Popcorns 384,238 403,449.90 423,622.40 444,803.51
Total Revenue 1,677,837 1,761,729 1,849,815 1,942,306
COGS 1,328,190 1,394,599.50 1,464,329.48 1,537,545.95
Gross Profit 349,647 367,129 385,486 404,760
Annual Marketing Costs -500,000 -500,000 -500,000 -500,000
EBIT -150,353 -132,871 -114,514 -95,240
TAX
NET Profit
Base Cash Flow

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