TSP

Profit Projections 1st Per. 2nd Per. 3rd Per.

Net Sales 2112 2304 2496
Gross Profit 1012 1104 1196
Selling Expense 1100 1050 1000
Increase Overhead
Depreciation on Jell-O equipment 46 43 41
Start-up costs 15
Profit before taxes -149 11 155
Taxes (52%) 77 -6 -81

Net Profit -72 5 74

Depreciation 65 61 58

Cash flow from operation -7 66 132

Receivables 124 134 142

Inventories 207 222 237
Prepaid & Deferred Exp.
Less Current Liabilities (2) (82) (108)
Total Working Funds (15 Thru 19) 329 274 271

Project Request Detail 1st Per.

Land $
Buildings 80
Machinery & Equipment 120
Engineering
Other (Explain) 453
Expense Portion (Before Tax)
Sub Total 0
Less: Salvage Value (Old Asset)
Total Project Cost* 653
Less: Taxes on Exp. Portion
Net Project Cost 653

Total Project Cash Flows (Oper. + Inv 0 Per. 1st Per. 2nd Per. 3rd Per.
Cash Flow available to Investors

Cash flow from operations 8 -7 66 132

Working Capital -329 55 3
New Plant and Equipment -200
Jell-O Facilities -453
Total Cash Flows -645 -336 121 135
Net Present Value (VAN) 539.5
TIR 18.5%

Jell-O Facilities Used 0 Per. 1st Per. 2nd Per. 3rd Per.
Cash Flow available to Investors
Cash flow from operations :Depre(1- 0 -22 -21 -20
Working Capital 0 0 0
New Plant and Equipment 0
Jell-O Facilities 453
Total Cash Flows 453 -22 -21 -20
Net Present Value (VAN) 326.2
TIR -9.5%

SGA Overhead Allocation 0 Per. 1st Per. 2nd Per. 3rd Per.
Cash Flow available to Investors

Cash flow from operations :Overh(1- 0 0 0 0

Working Capital 0 0 0
New Plant and Equipment 0
Jell-O Facilities 0
Total Cash Flows 0 0 0 0
Net Present Value (VAN) 128.5
TIR Err:523

Erosion of Jell-O Profits 0 Per. 1st Per. 2nd Per. 3rd Per.
Cash Flow available to Investors

Cash flow from operations 0 -86 -96 -101

Working Capital 0 0 0
New Plant and Equipment 0
Jell-O Facilities 0
Total Cash Flows 0 -86 -96 -101
Net Present Value (VAN) -646.6
TIR Err:523

Alternatives Net Present Value (VAN) Erosion of Jell-O Profits

Analysis Base Case
1 540 -647
2 540 -647
3 540 -647
4 540 -647
5 540 0
6 540 0
7 540 0
8 540 0
4th Per. 5th Per. 6th Per. 7th Per. 8th Per. 9th Per.
2688 2880 2880 3072 3072 3264
1288 1380 1380 1472 1472 1564
900 700 700 730 730 750
90 90 90 90 90
38 35 33 30 26 24

350 555 557 622 626 700

-182 -289 -290 -323 -326 -364

168 266 267 299 300 336

54 50 46 42 37 34

222 316 313 341 337 370

157 160 160 169 169 178

251 266 266 281 281 296

(138) (185) (184) (195) (195) (207)

270 241 242 255 255 267

4th Per. 5th Per. 6th Per. 7th Per. 8th Per. 9th Per.

222 316 313 341 337 370

1 29 -1 -13 0 -12

223 345 312 328 337 358

4th Per. 5th Per. 6th Per. 7th Per. 8th Per. 9th Per.
 -18 -17 -16 -14 -12 -12
0 0 0 0 0 0

-18 -17 -16 -14 -12 -12

4th Per. 5th Per. 6th Per. 7th Per. 8th Per. 9th Per.

0 43 43 43 43 43
0 0 0 0 0 0

0 43 43 43 43 43

4th Per. 5th Per. 6th Per. 7th Per. 8th Per. 9th Per.

-106 -110 -110 -115 -115 -120

0 0 0 0 0 0

-106 -110 -110 -115 -115 -120

Jell-O Facilities Used SGA Overhead Allocation

326 129
0 129
326 0
0 0
326 129
0 129
326 0
0 0
10th Per.
3264
1564
750
90
21

703
-366

337
30

367

178
296

(207)
267

10th Per. 11th Per.

367
0 267 0 OJO OJO
31
60
367 358

10th Per. 11th Per.

 -10 -60
0 0 0 OJO OJO
0
0
-10 -60

10th Per. 11th Per.

43 0
0 0 0 OJO OJO
0
0
43 0

10th Per. 11th Per.

-120
0 0 0 OJO OJO
0
0
-120 0

Net Present Value (VAN)

Total
348
21
219
-107
994
668
866
540