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Units 35,000 35,000 75,000 46,000
Selling Price (4% inflation) 20.00 20.80 21.63 22.50
Variable Cost (5% inflation) 12.00 12.60 13.23 13.89
Intial Fixed cost 1,000,000
Investment Appraisal Rate 12%
Projected Sales 700,000 728,000 1,622,400 1,034,875
Variable Cost (420,000) (441,000) (992,250) (639,009)
Fixed Cost Depr (Tax Deduction, NCF) (250,000) (250,000) (250,000) (250,000)
Profit before tax (for calculating Tax) 30,000 37,000 380,150 145,866
Tax Rate at 30% (9,000) (11,100) (114,045) (43,760)
Profit after tax (should add back fixed cost, then it's period Cash flow) 21,000 25,900 266,105 102,106
Add back Fixed cost 250,000 250,000 250,000 250,000
271,000 275,900 516,105 352,106
NPV 47,351
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