LAG 3yrThe Super ProjectProject Request Detail1st per.1.
LandRETURN ON NEW FUNDS EMPLOYED - 10YR AVG.2. Buildings80.03.
Machinery and Equipment120.0A. New funds employed (line 21)3803804.
EngineeringB. Profit before taxes (line 35)2405. OtherC. Net profit
(line 37)1166. Expense Portion (before tax)D. Calculated
return30.49%63.08%7. Sub-total200.0PAYBACK YEARS FROM OPERATIONAL
DATE8. Less: Salvage value (old asset)Part year calculation for
first period9. Total project cost200.0Number of full years to
payback6.010. Less:Taxes on Exp. portionPart year calculation for
last period0.8311. Net project cost200.0Total years to
payback6.831st per.2nd per.3rd per.4th per.5th per.6th per.7th
per.8th per.9th per.10th per.Funds EmployedFiscal 68Fiscal 69Fiscal
70Fiscal 71Fiscal 72Fiscal 73Fiscal 74Fiscal 75Fiscal 76Fiscal
7710-yr avg12. Net project cost (line
11)$200$200$200$200$200$200$200$200$200$20013. Deduct depreciation
(cum.)$19$37$54$70$85$98$110$121$131$14014. Capital funds
employed$181$163$146$130$115$102$90$79$69$60$11415.
Cash$124$134$142$151$160$160$169$169$178$178$15716. Receivables17.
Inventories$207$222$237$251$266$266$281$281$296$296$26018. Prepaid
and deferred exp.19. Less: current
liabilities$(2)$(82)$(108)$(138)$(185)$(184)$(195)$(195)$(207)$(207)$(150)20.
Total working funds (15 thru
19)$329$274$271$264$241$242$255$255$267$267$26721. Total new funds
employed (14+20)$510$437$417$394$356$344$345$334$336$327$380Profit
and Loss22. Unit
volume$1,100$1,200$1,300$1,400$1,500$1,500$1,600$1,600$1,700$1,700$1,46023.
Gross
Sales$2,200$2,400$2,600$2,800$3,000$3,000$3,200$3,200$3,400$3,400$2,92024.
Deductions$88$96$104$112$120$120$128$128$136$136$11725. Net
sales$2,112$2,304$2,496$2,688$2,880$2,880$3,072$3,072$3,264$3,264$2,80326.
Cost of goods
sold$1,100$1,200$1,300$1,400$1,500$1,500$1,600$1,600$1,700$1,700$1,46027.
Gross
Profit$1,012$1,104$1,196$1,288$1,380$1,380$1,472$1,472$1,564$1,564$1,34328.
Advertising expense29. Selling
expense$1,100$1,050$1,000$900$700$700$730$730$750$750$84130.
General and Admin. costs31. Research expense32. Start-up
costs$15$233. Other: Test market$360$3634. Adjustments:
Erosion$180$200$210$220$230$230$240$240$250$250$22535. Profit
before taxes$(643)$(146)$(14)$168$450$450$502$502$564$564$24036.
Taxes$(334)$(76)$(7)$87$234$234$261$261$293$293$12536A. Add:
Investment credit$(1)$(1)$(1)$(1)$(1)$(1)$(1)$(1)0.00.0$(1)37. Net
profit$(308)$(69)$(6)$82$217$217$242$242$271$271$11638. Cumulative
net profit$(308)$(377)$(382)$(301)$(84)$133$375$617$888$1,15939.
New funds to repay (21 less
38)$818$814$799$695$440$211$(30)$(283)$(552)$(832)Base Case
Assumptions:SenstivityJell-O erosion factor50%base case44.0Building
and agglom100%(after 3 years)Jello to 60%(15)Facilities
overhead100%(after 3 years)Jello to 100%(250)Additional
overhead75%Facilities to 1971107.0Distribution system
alloc0%Facilities to 1969(23)Internal rate of return10.7%Bldg &
Agglom usage allocation230.0NPV @ 10%$44NPV at 11%65.0Inflation in
cost of bldg &
agglom.25%1967.01968196919701971197219731974197519761977Depreciation
rates9.5%9.0%8.5%8.0%7.5%6.5%6.0%5.5%5.0%4.5%Net
sales$2,112$2,304$2,496$2,688$2,880$2,880$3,072$3,072$3,264$3,264COGS$(1,100)$(1,200)$(1,300)$(1,400)$(1,500)$(1,500)$(1,600)$(1,600)$(1,700)$(1,700)Selling
expense$(1,100)$(1,050)$(1,000)$(900)$(700)$(700)$(730)$(730)$(750)$(750)Depreciation
(new)$(19)$(18)$(17)$(16)$(15)$(13)$(12)$(11)$(10)$(9)Depreciation
(Jell-O)$(100)$(95)$(89)$(84)$(79)$(68)$(63)Depreciation (dist
system)0.00.00.00.00.00.00.00.00.00.0Start-up costs$(15)Facilities
overhead$(28)$(28)$(28)$(28)$(28)$(28)$(28)Additional
overhead$(68)$(68)$(68)$(68)$(68)$(68)Jell-O
erosion0.0$(90)$(100)$(105)$(110)$(115)$(115)$(120)$(120)$(125)$(125)Profit
before taxes$(15)$(197)$(64)$74$134$360$367$431$437$515$522Taxes @
52%$8$102$33$(38)$(70)$(187)$(191)$(224)$(227)$(268)$(271)Investment
tax credit0.0$80.00.00.00.00.00.00.00.00.0Net
profit$(7)$(87)$(31)$36$64$173$176$207$210$247$250Depreciation
add-back0.0$19$18$17$116$110$102$96$90$78$72Operating cash
flow$(7)$(68)$(13)$53$180$282$279$303$299$326$322New plant &
equipment$200Jell-O building$250Jell-O equipment$800Distribution
system0.0Change in
NWC0.0$329$(55)$(3)$(7)$(23)$1$130.0$120.0Investment
outflow$200$329$(55)$1,047$(7)$(23)$1$130.0$120.0Recovery of
working capital$267Recovery of pl&eq (book)$533Net cash
flow$(207)$(397)$42$(994)$187$305$278$290$299$314$1,122NPV$44
&C&"Arial,Bold"&14Super Project
