0 évaluation0% ont trouvé ce document utile (0 vote)
69 vues1 page
The document analyzes the financial projections of Project Blue Wave, an aquaculture initiative. It finds that the project would increase annual catch monetization by $4.2 million before taxes due to higher yields and revenues. After accounting for taxes, annual cash flows would increase by $2.9 million. The project also meets the required minimum gross profit margin of 20% and would require $1.2 million in financing for each of the first two years.
The document analyzes the financial projections of Project Blue Wave, an aquaculture initiative. It finds that the project would increase annual catch monetization by $4.2 million before taxes due to higher yields and revenues. After accounting for taxes, annual cash flows would increase by $2.9 million. The project also meets the required minimum gross profit margin of 20% and would require $1.2 million in financing for each of the first two years.
The document analyzes the financial projections of Project Blue Wave, an aquaculture initiative. It finds that the project would increase annual catch monetization by $4.2 million before taxes due to higher yields and revenues. After accounting for taxes, annual cash flows would increase by $2.9 million. The project also meets the required minimum gross profit margin of 20% and would require $1.2 million in financing for each of the first two years.
Appendix 4: Analysis of Alternative Project Blue Wave
Figure 1: Annual Increase in CM and Cash Flows
Increased annual yield (5,100,000-3,800,000) 1,300,000kg Revenue per kg (average) $4.20 Variable cost per kg 1.93 CM per kg $2.27 Current CM per kg (excluding Site 3 loss of fish) 1.94 Total increase in CM per kg $0.33 Expected total CM (5,100,000 x 2.27) 11577000 Current total CM (3800000x1.94) 7372000 Increase in annual CM before taxes 4205000 Income Taxes (30%) 1261500 Increase in annual cash flows after taxes 2943500 Figure 2: Gross Profit Margin New gross profit per kg = Revenue - Full cost = 4.20 - 2.91 = 1.29 Gross profit margin percentage = Gross profit/revenue = 1.29/4.20 = 30.7% Therefore: The projet will meet the bank's constraint of minimum gross margin of at least 20% Figure 3: Financing Required $1.2 million in each of Years 1 and Year
Ricardo Palma University Faculty: Economic and Business Science School: Global Business Administration Professor: Carlos, González Taranco Curso: Corporate Finance Group: 1
Guide to Strategic Management Accounting for Managers: What is management accounting that can be used as an immediate force by connecting the management team and the operation field?