Project Feasibilty and Npv - 1169 Words

Principles of Managerial Finance MBA6, GROUP 1 Phelps Toy Company TOYS Prepared by :Essam Gayad , Aladdin Al-Jajeh, Majed Mourtada , Shaza.Rifaai MHD Obada Morad Date 22nd May 2012 MBA6 -MF Phelps toy company case, 6 YEARS BUDGET STUDY, PROJECT FEASIBLITY Table (1) sales and net income of the company for the past years. year 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 $SALES 150,000 240,000 756,000 1,340,000 2,680,000 3,320,000 5,580,000 6,792,000 5,941,000 9,237,000 11,622,000 12,140,000 17,165,000 22,838,000 27,762,000 32,437,000 38,911,000 39,750,000 39,860,000 NET INCOME (16,000) (5,000) 72,000 91,000 175,000 198,000 248,000 387,000 291,000 439,000 566,000 621,000 850,000†¦show more content†¦Ã¯â€š § FSD is a statistical measure that represents the probability that the Automated Valuation Model (AVM) value falls within a statistical range of the actual market value, measured against a sales price. ï  ® FSD is expressed as a percentage in decimal form i.e., 13% as .13. ï  ® The lower the FSD, the smaller the error in predicting actual market value. ï  ® FSD can be used to determine your own internal confidence bands. MBA6- MF 1-TABLE(5): EBDT,TAX,NET ICOME,.. SALES $ $ OP EXPENS 70% of sales 1750000 2100000 2100000 2100000 $EBDT $DEP. $EBT TAX 34% 64600 1360 $ EAT IN CASH FLOW (EAT+DEP.) YEAR 1 YEAR 2 2500000 3000000 3000000 3000000 750000 560000 190000 900000 896000 900000 537600 900000 322000 4000 125400 2640 239184 381480 685400 898640 YEAR 3 YEAR 4 YEAR 5 YEAR 6 362400 123216 578000 196520 776784 703480 625980 599716 2750000 2750000 1925000 1925000 825000 322000 503000 171020 331980 437316 825000 162400 662600 225284 MBA6- MF ï  ® 5 years MACRS DEPRECIATION TALBE Year ratio 1 0.200 2 0.320 3 0.192 4 0.115 5 0.115 6 0.058 MBA6- MF (FIG 3) PV $2869077.5 MBA6- MF APROPRIAT DISCOUNT RATE COEFFICINT OF VARIATION ST DEV/1ST YEAR SALES 1226000/2500000 = 0.4904 Referring to table ( 4) 0.4904 ïÆ'   r =14% COEFFICINT OF VARIATION :A statistical measure of the dispersion of data points in a data series around the mean. The coefficient of variation represents the ratio of the standard