Worldwide Paper Case

1) Worldwide Paper Case

Make sure to create your own, personal case spreadsheet before you start with Quiz 4. Use the Worldwide Paper Case Analysis handouts as the basis, and then calibrate your spreadsheet accordingly.

Sheet1

$ – 0 $ – 0 $ – 0 $ – 0

$ – 0

$ – 0 $ – 0 $ – 0 $ – 0

$ (16,000)

$ (600) $ – 0 $ – 0 $ – 0 $ – 0

$ 10,000 $ 10,000 $ 10,000 $ 10,000

Sales)

75%

$ (7,500) $ (7,500) $ (7,500) $ (7,500)

5%

$ (500) $ (500) $ (500) $ (500)

$ 3,500 $ 3,500 $ 3,500 $ 3,500

$ 5,500 $ 5,500 $ 5,500 $ 5,500

$ (2,200) $ (2,200) $ (2,200) $ (2,200)

$ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000

$ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200

$ (16,000)

$ 4,500 $ 4,500

																															Quiz 4
Michael D. Lopez
WACC	10.00%	NPV	$ 622
Tax	40%	IRR	11.1%
2016	2017	2018	2019	2020	2021	2022
Investment:
Capital Outlay			$ (16,000)	$ (2,000)														$ – 0
Net Working Capital (10% Sales)	$ (400)		$ (600)
Total Investment	$ (2,400)
Net Working Capital (Full Recovery)	$ 1,000
Sales Revenue	$ 4,000					$ 10,000
Cost of Good Sold ( Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	7	5%	$ (3,000)					$ (7,500)
SG&A (5% Sales)	$ (200)					$ (500)
Operating Savings	$ 2,000					$ 3,500
Net revenue increase	$ 2,800					$ 5,500
Taxes	$ (1,120)					$ (2,200)
Depreciation ($18,000/6)						$ 3,000
Tax Savings						$ 1,200
Sale of equipment	$ 1,800
Taxes on Sale	$ (720)
Free Cash Flows	$ 480	$ 3,900			$ 4,500	$ 6,580