FINIP4

"1 "Superior Corp . Income Statement Cash Flow "Year 0 "Year 1 "Year 2 "Year 3 "Year 4 "Year 5 "Year 6 "Year 7 "Year 8 "TOTAL "New plant "-1000000 "Increase in inventory /AR "-200000 "New sales "950000 "1500000 "1500000 "1500000 "1500000 "1500000 "1500000 "1500000 "Direct cost (product "522500 "825000 "825000 "825000 "825000 "825000 "825000 "825000 "Indirect cost "80000 "80000 "80000 "80000 "80000 "80000 "80000 "80000 "GROSS PROFIT "347500 "595000 "595000 "595000 "595000 "595000 "595000 "595000 "Depreciation "200000 "200000 "200000 "200000 "200000 "200000 "EBIT "147500 "395000 "395000 "395000 "395000 "395000 "595000 "595000 "Taxes "51625 "138250 "138250 "138250 "138250 "138250 "208250 "208250

"NET PROFIT "95875 "256750 "256750 "256750 "256750 "256750 "386750 "386750 "NET CASH FLOW "-1200000 "295875 "456750 "456750 "456750 "456750 "456750 "386750 "386750 "NPV Factor "1 "0 .9090909 "0 .0991735 "0 .0901578 "0 .5365071 "0 .3059155 "0 .0053777 "0 .8230706 "0 .0209733 "NPV of CASH FLOW "-1200000 "268977 .3 "377479 .5 "343163 .5 "311966 .6 "283605 .9 "257823 .3 "198463 .6 "180421 .4 "1021900 "2 "Payback Year before full recovery Unrecovered cost at start of year /Cash flow during year "Pay Back 2 447 ,375 /456 ,750 2 .98 years or 2 years , 11 months and 23 days "The NPV is calculated in the requirement no 1 which is 1 ,021 ,901 "3 "The payback period of than less than 3 years , so if we follow the rules of the company this project is quite feasible and acceptable for the company 's perspective not only on the basis of lesser...