Egypt Revolution Inc.

Equipment
Salvage value
R&D
Marketing study

$ 38,500,000
$ 5,400,000
$
750,000
$
200,000
Year 1
74,000
14.29%
80,000
15,000

Sales(units)
Depreciation rate
Sales of old Smartphone
Lost sales
Price
VC
FC
Price of old Smartphone
Price reduction
of old Smartphone
VC of old Smartphone
Tax rate
NWC percentage
Required return

sunk cost
sunk cost
Year 2
95,000
24.49%
60,000
15,000

Year 3
125,000
17.49%

Year 4
105,000
12.49%

$
480
$
185
$ 5,300,000
$
310
$
$

35
125
35%
20%
12%

Output Area:

Sales
New
Lost sales
Lost rev.
Net sales
VC
New
Lost sales

Sales
VC
Fixed costs
Dep
EBT
Tax

Year 1
$35,520,000
4,650,000
2,275,000
$28,595,000

Year 2
Year 3
$45,600,000 $60,000,000
4,650,000
1,575,000
$39,375,000 $60,000,000

Year 4
$50,400,000

$13,690,000
1,875,000
$11,815,000

$17,575,000 $23,125,000
1,875,000
$15,700,000 $23,125,000

$19,425,000

$28,595,000
11,815,000
5,300,000
5,501,650
$5,978,350
2,092,423

$39,375,000 $60,000,000
15,700,000 23,125,000
5,300,000
5,300,000
9,428,650
6,733,650
$8,946,350 $24,841,350
3,131,223
8,694,473

$50,400,000
19,425,000
5,300,000
4,808,650
$20,866,350
7,303,223

$50,400,000

$19,425,000

NI
+Dep
OCF
NWC
Beg
End
NWC CF
Net CF
Salvage
BV of equipment
Taxes
Salvage CF
Net CF

Payback period
PI
IRR
NPV

$3,885,928
5,501,650
$9,387,578

$5,815,128 $16,146,878
9,428,650
6,733,650
$15,243,778 $22,880,528

$0
5,719,000
($5,719,000)

$5,719,000 $7,875,000
7,875,000 12,000,000
($2,156,000) ($4,125,000)

$3,668,578

$13,087,778 $18,755,528

$ 8,589,350
$ 1,116,273
$ 6,516,273
Time
0 $ (38,500,000)
1
3,668,578
2
13,087,778
3
18,755,528
4
20,291,778
5
29,694,590
3.147
1.475
25.44%
$18,304,125.01

$13,563,128
4,808,650
$18,371,778

$12,000,000
10,080,000
$1,920,000
$20,291,778

Year 5
80,000
8.93%

Year 5
$38,400,000

$38,400,000

$14,800,000
$14,800,000

$38,400,000
14,800,000
5,300,000
3,438,050
$14,861,950
5,201,683

$9,660,268
3,438,050
$13,098,318

$10,080,000
0
$10,080,000
$23,178,318