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Petaluma Chicken Inc Data Please show how to get calculations that show calc in excel Old Situation New Situation Chickens per Year 500000 500000 Cost per Chicken

Petaluma Chicken, Inc Data- Please show how to get calculations that show calc in excel.      
  Old Situation New Situation    
Chickens per Year         500,000        500,000      
Cost per Chicken $3.00 $4.00      
Shipping Cost per Chicken $1.00 $          0.75      
Selling Price $6.50 $8.50      
Total Cost per Chicken $4.00 $4.75 Add cost and shipping    
Additional Gross Profit per Chicken   $1.25 Subtract old price minus old cost from new price minus new cost
Investment in Additional Chickens   $15,000 One time investment in increased inventory  
Land Cost   $150,000      
Buildings Cost   $300,000      
Labor Expense   $130,000      
Depreciation Salvage Value (Buildings)   $100,000      
Annual Depreciation Expense   $ 40,000.00 Cost - salvage value divided by years  
Actual Salvage Value (Land)   $200,000      
Actual Salvage Value (Buildings)   $100,000      
Life of Project   5.00      
Tax Rate   35%      
Weighted Average Cost of Capital   5%      
           
Cash Flow          
Initial Outlay $465,000 Cost of land, buildings and increase in inventory  
           
Annual After-tax Cash Flow $387,750.00 Chickens per year times additional profit minus labor + depreciation.  
Then multiply by 1-tax rate to get after tax net income then add back depreciation as it's not cash    
           
Terminal Cash Flow Calc Sell off land, buildings and inventory while accounting for taxes    
So actual salvage value building minus any taxes due on the difference of the actual salvage value and the depreciated salvage value.  
Plus the actual salvage value on the land minus any taxes due on the difference of the actual salvage value and the land cost    
Plus selling off the increased inventory (sold at same price as bought)      
           
Period Cash Flow Initial outlay from above    
0 Calc After tax CF from above    
1 Calc After tax CF from above    
2 Calc After tax CF from above    
3 Calc After tax CF from above    
4 Calc After tax CF from above    
5 Calc After tax CF from above plus the terminal cash flow from above  
           
Profitability Measures          
Payback Period Calc        
Discounted Payback Calc        
NPV Calc Use NPV calculation in excel just use =NPV and fill it out  
Profitability Index Calc NPV divided by initial cash outlay plus 1  
IRR Calc Use IRR calculation in excel just use =IRR and fill it out

May 02 2020 View more View Less

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