Capital Budgeting Anal

Answer 2
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Demand - Entertainment product
180,000
180,000
180,000
180,000
180,000
price per unit
4,594
4,594
4,594
4,594
4,594
revenue from agreement
826,920,000
826,920,000
826,920,000
826,920,000
826,920,000
other retails
120,000
120,000
220,000
220,000
220,000
220,000
price per unit
5,000
5,600
6,272
7,025
7,868
8,812
revenue from other retails
600,000,000
672,000,000
1,379,840,000
1,545,420,800
1,730,871,296
1,938,575,852
total revenue
600,000,000
1,498,920,000
2,206,760,000
2,372,340,800
2,557,791,296
2,765,495,852
variable cost per unit
3,500
3,920
4,390
4,917
5,507
6,168
total Variable cost
420,000,000
1,176,000,000
1,756,160,000
1,966,899,200
2,202,927,104
2,467,278,356
cost savings
(32,400,000)
other Fixed expenses
25,000,000
28,000,000
31,360,000
35,123,200
39,337,984
44,058,542
depreciation
30,000,000
30,000,000
30,000,000
30,000,000
30,000,000
30,000,000
total expense
442,600,000
1,234,000,000
1,817,520,000
2,032,022,400
2,272,265,088
2,541,336,899
EBT
157,400,000
264,920,000
389,240,000
340,318,400
285,526,208
224,158,953
tax rate(25%)
39,350,000
66,230,000
97,310,000
85,079,600
71,381,552
56,039,738
EAT
118,050,000
198,690,000
291,930,000
255,238,800
214,144,656
168,119,215
NCF
148,050,000
228,690,000
321,930,000
285,238,800
244,144,656
198,119,215
Remittance
148,050,000
228,690,000
321,930,000
285,238,800
244,144,656
198,119,215
WHT(10%)
14,805,000
22,869,000
32,193,000
28,523,880
24,414,466
19,811,921
Remittance after WHT
133,245,000
205,821,000
289,737,000
256,714,920
219,730,190
178,307,293
Salvage Value
exchange rate
0.02254
0.02209
0.02165
0.02121
0.02079
0.02037
CF to parent
3,003,342
4,546,421
6,272,057
5,446,070
4,568,230
3,632,900
PV
2,402,674
2,909,710
3,211,293
2,230,710
1,496,918
952,343
Initial investment 12,650,000
Commulative PV
(10,247,326)
(7,337,617)
(4,126,323)
(1,895,613)
(398,695)
553,648

dgeting Analysis
Year 7

Year 8

Year 9

Year 10

180,000
4,594
826,920,000
220,000
9,869
2,171,204,954
2,998,124,954
6,908
2,763,351,759

180,000
4,594
826,920,000
220,000
11,053
2,431,749,548
3,258,669,548
7,737
3,094,953,970

180,000
4,594
826,920,000
220,000
12,380
2,723,559,494
3,550,479,494
8,666
3,466,348,447

180,000
4,594
826,920,000
220,000
13,865
3,050,386,633
3,877,306,633
9,706
3,882,310,260

49,345,567
30,000,000
2,842,697,326
155,427,627
38,856,907
116,570,720
146,570,720
146,570,720
14,657,072
131,913,648

55,267,035
30,000,000
3,180,221,006
78,448,543
19,612,136
58,836,407
88,836,407
88,836,407
8,883,641
79,952,766

61,899,079
30,000,000
3,558,247,526
(7,768,032)
(1,942,008)
(5,826,024)
24,173,976
24,173,976
2,417,398
21,756,578

69,326,969
30,000,000
3,981,637,229
(104,330,596)
(26,082,649)
(78,247,947)
(48,247,947)
(48,247,947)
(4,824,795)
(43,423,152)
650,000,000
0.01879
11,399,201
1,223,980

0.01997
2,633,905
552,370
1,106,018

0.01957
1,564,480
262,476
1,368,494

0.01918
417,208
55,997
1,424,490

2,648,470

Answer 3
Year 1
Year 2
Year 3
Demand - Entertainment product
5,000
5,000
price per unit
5,600
6,272
revenue from agreement
28,000,000
31,360,000
other retails
120,000
120,000
220,000
price per unit
5,000
5,600
6,272
revenue from other retails
600,000,000
672,000,000
1,379,840,000
total revenue
600,000,000
700,000,000
1,411,200,000
variable cost per unit
3,500
3,920
4,390
total Variable cost
420,000,000
490,000,000
987,840,000
cost savings
(32,400,000)
other Fixed expenses
25,000,000
28,000,000
31,360,000
depreciation
30,000,000
30,000,000
30,000,000
total expense
442,600,000
548,000,000
1,049,200,000
EBT
157,400,000
152,000,000
362,000,000
tax rate(25%)
39,350,000
38,000,000
90,500,000
EAT
118,050,000
114,000,000
271,500,000
NCF
148,050,000
144,000,000
301,500,000
Remittance
148,050,000
144,000,000
301,500,000
WHT(10%)
14,805,000
14,400,000
30,150,000
Remittance after WHT
133,245,000
129,600,000
271,350,000
Salvage Value
exchange rate
0.023
0.02254
0.02209
0.02165
CF to parent
3,003,342
2,862,760
5,874,026
PV
2,402,674
1,832,167
3,007,501
Initial investment
12,650,000
Commulative PV
(10,247,326)
(8,415,160)
(5,407,658)

Capital Budgeting Analysis

Year 4

Year 5

Year 6

Year 7

Year 8

5,000
7,025
35,123,200
220,000
7,025
1,545,420,800
1,580,544,000
4,917
1,106,380,800

5,000
7,868
39,337,984
220,000
7,868
1,730,871,296
1,770,209,280
5,507
1,239,146,496

5,000
8,812
44,058,542
220,000
8,812
1,938,575,852
1,982,634,394
6,168
1,387,844,076

5,000
9,869
49,345,567
220,000
9,869
2,171,204,954
2,220,550,521
6,908
1,554,385,365

5,000
11,053
55,267,035
220,000
11,053
2,431,749,548
2,487,016,583
7,737
1,740,911,608

35,123,200
30,000,000
1,171,504,000
409,040,000
102,260,000
306,780,000
336,780,000
336,780,000
33,678,000
303,102,000

39,337,984
30,000,000
1,308,484,480
461,724,800
115,431,200
346,293,600
376,293,600
376,293,600
37,629,360
338,664,240

44,058,542
30,000,000
1,461,902,618
520,731,776
130,182,944
390,548,832
420,548,832
420,548,832
42,054,883
378,493,949

49,345,567
30,000,000
1,633,730,932
586,819,589
146,704,897
440,114,692
470,114,692
470,114,692
47,011,469
423,103,223

55,267,035
30,000,000
1,826,178,644
660,837,940
165,209,485
495,628,455
525,628,455
525,628,455
52,562,845
473,065,609

0.02121
6,430,148
2,633,788

0.02079
7,040,890
2,307,159

(2,773,870)

(466,711)

0.02037
7,711,578
2,021,544
1,554,833

0.01997
8,448,054
1,771,685
3,326,518

0.01957
9,256,735
1,553,022
4,879,541

Year 9

Year 10

5,000
12,380
61,899,079
220,000
12,380
2,723,559,494
2,785,458,573
8,666
1,949,821,001

5,000
13,865
69,326,969
220,000
13,865
3,050,386,633
3,119,713,602
9,706
2,183,799,521

61,899,079
30,000,000
2,041,720,081
743,738,493
185,934,623
557,803,869
587,803,869
587,803,869
58,780,387
529,023,482

69,326,969
30,000,000
2,283,126,490
836,587,112
209,146,778
627,440,334
657,440,334
657,440,334
65,744,033
591,696,300
650,000,000
0.01879
23,334,794
2,505,554

0.01918
10,144,659
1,361,593
6,241,134

8,746,688

Answer 4
Year 1
Year 2
Year 3
Demand - Entertainment product
5,000
5,000
price per unit
5,600
6,272
revenue from agreement
28,000,000
31,360,000
other retails
120,000
120,000
220,000
price per unit
5,000
5,600
6,272
revenue from other retails
600,000,000
672,000,000
1,379,840,000
total revenue
600,000,000
700,000,000
1,411,200,000
variable cost per unit
3,500
3,920
4,390
total Variable cost
420,000,000
490,000,000
987,840,000
cost savings
(32,400,000)
other Fixed expenses
25,000,000
28,000,000
31,360,000
depreciation
30,000,000
30,000,000
30,000,000
total expense
442,600,000
548,000,000
1,049,200,000
EBT
157,400,000
152,000,000
362,000,000
tax rate(25%)
39,350,000
38,000,000
90,500,000
EAT
118,050,000
114,000,000
271,500,000
NCF
148,050,000
144,000,000
301,500,000
Remittance
148,050,000
144,000,000
301,500,000
WHT(10%)
14,805,000
14,400,000
30,150,000
Remittance after WHT
133,245,000
129,600,000
271,350,000
Salvage Value
exchange rate
0.023
0.02254
0.02209
0.02165
CF to parent
3,003,342
2,862,760
5,874,026
PV
2,402,674
1,832,167
3,007,501
Initial investment
12,650,000
Commulative PV
(10,247,326)
(8,415,160)
(5,407,658)

Year 4

Year 5

Year 6

Year 7

Year 8

5,000
7,025
35,123,200
220,000
7,025
1,545,420,800
1,580,544,000
4,917
1,106,380,800

5,000
7,868
39,337,984
220,000
7,868
1,730,871,296
1,770,209,280
5,507
1,239,146,496

5,000
8,812
44,058,542
220,000
8,812
1,938,575,852
1,982,634,394
6,168
1,387,844,076

5,000
9,869
49,345,567
220,000
9,869
2,171,204,954
2,220,550,521
6,908
1,554,385,365

5,000
11,053
55,267,035
220,000
11,053
2,431,749,548
2,487,016,583
7,737
1,740,911,608

35,123,200
30,000,000
1,171,504,000
409,040,000
102,260,000
306,780,000
336,780,000
336,780,000
33,678,000
303,102,000

39,337,984
30,000,000
1,308,484,480
461,724,800
115,431,200
346,293,600
376,293,600
376,293,600
37,629,360
338,664,240

44,058,542
30,000,000
1,461,902,618
520,731,776
130,182,944
390,548,832
420,548,832
420,548,832
42,054,883
378,493,949

49,345,567
30,000,000
1,633,730,932
586,819,589
146,704,897
440,114,692
470,114,692
470,114,692
47,011,469
423,103,223

55,267,035
30,000,000
1,826,178,644
660,837,940
165,209,485
495,628,455
525,628,455
525,628,455
52,562,845
473,065,609

0.02121
6,430,148
2,633,788

0.02079
7,040,890
2,307,159

(2,773,870)

(466,711)

0.02037
7,711,578
2,021,544
1,554,833

0.01997
8,448,054
1,771,685
3,326,518

0.01957
9,256,735
1,553,022
4,879,541

Year 9

Year 10

5,000
12,380
61,899,079
220,000
12,380
2,723,559,494
2,785,458,573
8,666
1,949,821,001

5,000
13,865
69,326,969
220,000
13,865
3,050,386,633
3,119,713,602
9,706
2,183,799,521

61,899,079
30,000,000
2,041,720,081
743,738,493
185,934,623
557,803,869
587,803,869
587,803,869
58,780,387
529,023,482

69,326,969
30,000,000
2,283,126,490
836,587,112
209,146,778
627,440,334
657,440,334
657,440,334
65,744,033
591,696,300

0.01918
10,144,659
1,361,593

0.01879
11,119,556
1,193,953

6,241,134

7,435,087

Answer 5
Year 1
Year 2
Year 3
Demand - Entertainment product
5,000
5,000
price per unit
5,600
6,272
revenue from agreement
28,000,000
31,360,000
other retails
120,000
120,000
220,000
price per unit
5,000
5,600
6,272
revenue from other retails
600,000,000
672,000,000
1,379,840,000
total revenue
600,000,000
700,000,000
1,411,200,000
variable cost per unit
3,500
3,920
4,390
total Variable cost
420,000,000
490,000,000
987,840,000
cost savings
(32,400,000)
other Fixed expenses
25,000,000
28,000,000
31,360,000
depreciation
30,000,000
30,000,000
30,000,000
total expense
442,600,000
548,000,000
1,049,200,000
EBT
157,400,000
152,000,000
362,000,000
tax rate(25%)
39,350,000
38,000,000
90,500,000
EAT
118,050,000
114,000,000
271,500,000
NCF
148,050,000
144,000,000
301,500,000
Remittance
148,050,000
144,000,000
301,500,000
WHT(10%)
14,805,000
14,400,000
30,150,000
Remittance after WHT
133,245,000
129,600,000
271,350,000
Salvage Value
exchange rate
0.023
0.02185
0.02076
0.01972
CF to parent
2,911,403
2,690,172
5,350,920
PV
2,329,123
1,721,710
2,739,671
Initial investment
12,650,000
Commulative PV
(10,320,877)
(8,599,167)
(5,859,496)

Year 4

Year 5

Year 6

Year 7

Year 8

5,000
7,025
35,123,200
220,000
7,025
1,545,420,800
1,580,544,000
4,917
1,106,380,800

5,000
7,868
39,337,984
220,000
7,868
1,730,871,296
1,770,209,280
5,507
1,239,146,496

5,000
8,812
44,058,542
220,000
8,812
1,938,575,852
1,982,634,394
6,168
1,387,844,076

5,000
9,869
49,345,567
220,000
9,869
2,171,204,954
2,220,550,521
6,908
1,554,385,365

5,000
11,053
55,267,035
220,000
11,053
2,431,749,548
2,487,016,583
7,737
1,740,911,608

35,123,200
30,000,000
1,171,504,000
409,040,000
102,260,000
306,780,000
336,780,000
336,780,000
33,678,000
303,102,000

39,337,984
30,000,000
1,308,484,480
461,724,800
115,431,200
346,293,600
376,293,600
376,293,600
37,629,360
338,664,240

44,058,542
30,000,000
1,461,902,618
520,731,776
130,182,944
390,548,832
420,548,832
420,548,832
42,054,883
378,493,949

49,345,567
30,000,000
1,633,730,932
586,819,589
146,704,897
440,114,692
470,114,692
470,114,692
47,011,469
423,103,223

55,267,035
30,000,000
1,826,178,644
660,837,940
165,209,485
495,628,455
525,628,455
525,628,455
52,562,845
473,065,609

0.01873
5,678,205
2,325,793

0.01780
6,027,194
1,974,991

(3,533,703)

(1,558,712)

0.01691
6,399,240
1,677,522
118,810

0.01606
6,795,781
1,425,179
1,543,989

0.01526
7,218,352
1,211,039
2,755,027

Year 9

Year 10

5,000
12,380
61,899,079
220,000
12,380
2,723,559,494
2,785,458,573
8,666
1,949,821,001

5,000
13,865
69,326,969
220,000
13,865
3,050,386,633
3,119,713,602
9,706
2,183,799,521

61,899,079
30,000,000
2,041,720,081
743,738,493
185,934,623
557,803,869
587,803,869
587,803,869
58,780,387
529,023,482

69,326,969
30,000,000
2,283,126,490
836,587,112
209,146,778
627,440,334
657,440,334
657,440,334
65,744,033
591,696,300
650,000,000
0.01377
17,099,337
1,836,027

0.01450
7,668,585
1,029,260
3,784,287

5,620,315

20000000

2167500
1842375
1566019
1296978
1029034
761255
493501
225750

2550000
382500
57375
8606
1291
194
29
4
1

15%
3000000
450000
67500
10125
1519
228
34
5
1
0

15%
17000000
14450000
12282500
10440125
8874106
7542990
6411542
5449811
4632339
3937488

382500
325125
276356
269041
267944
267779
267754
267751