FM HW question

[Raymond Tenorio]

Hey gang, anyone do FM yet and willing to discuss results? Not sure I
have it right.

--

Thanks,

Raymond

[Clarice]

I would love to go over... Let me try to review soon...

Sent from my iPhone

[Clarice Ma]

Lauren - I fixed the fixed cost already in the OCF section.

Below is the NPV and IRR. 

On Thu, Apr 5, 2012 at 10:00 AM, Clarice Ma <clari...@gmail.com> wrote:

Ray,

 

I hope I did not push the wrong button.

 

This is what I have got for NPV and IRR

 

NPV =15042458

IRR = 31.09

 

I hope I did not push the wrong numbers.

 

CF0	(26,000,000)
C01	9,431,000	F01	6
C02	10,931,000	F02	2

Clarice

On Wed, Apr 4, 2012 at 9:20 PM, Raymond Tenorio <ray...@gmail.com> wrote:

what number is the 24500000?

On Apr 4, 2012, at 8:49 PM, Clarice Ma wrote:

I will work on the NPV and the IRR soon.

 

But I think it will be pushed of the calculator???

 

My preliminary CF0 is 24500000+1500000

C01 is 9431000

C02 is 9431000+1500000

 

And yours?

On Wed, Apr 4, 2012 at 8:45 PM, Raymond Tenorio <ray...@gmail.com> wrote:

That makes sense.  I'll confirm later tonight, atm putting the kids to sleep.  How did you do the NPV and IRR? 

On Apr 4, 2012, at 8:42 PM, Clarice Ma wrote:

Ray,

 

I think Mark said in example of drilling oil...R&D cost can't be part of OCF and for marketing studies...whether you roll out the product or not - this costs can't be recovered...

 

Clarice

On Wed, Apr 4, 2012 at 8:36 PM, Raymond Tenorio <ray...@gmail.com> wrote:

Your OCF is higher than mine.  Missing your R&D and Marketing expenses?

On Apr 4, 2012, at 8:29 PM, Clarice Ma wrote:

Ray,

 

Here you go. Thanks.

 

Operating Cash Flow - OCF
Revenue		54,750,000
Cost of sales		(27,000,000)
Less:
Lost revenue		10,200,000
cost of sales		(4,590,000)
Plus:
Increase sales		3,740,000
Cost of sales		(1,375,000)
Less: Fixed Cost		11,120,000
Less: Depr.		3,500,000
EBIT		9,885,000
Less: Taxes (.40)		(3,954,000)
Net Income		5,931,000
Add: Depr.		3,500,000
OCF		9,431,000

On Wed, Apr 4, 2012 at 8:27 PM, Raymond Tenorio <ray...@gmail.com> wrote:

Clarice, your fixed costs are missing a number.  Let me know your new number for OCF.  

On Apr 4, 2012, at 8:20 PM, Clarice Ma wrote:

Ray,

 

Is this your OCF?

 

Operating Cash Flow - OCF
Revenue		54,750,000
Cost of sales		(27,000,000)
Less:
Lost revenue		10,200,000
cost of sales		(4,590,000)
Plus:
Increase sales		3,740,000
Cost of sales		(1,375,000)
Less: Fixed Cost		1,120,000
Less: Depr.		3,500,000
EBIT		19,885,000
Less: Taxes (.40)		(7,954,000)
Net Income		11,931,000
Add: Depr.		3,500,000
OCF		15,431,000

Clarice

On Tue, Apr 3, 2012 at 10:04 PM, Raymond <ray...@gmail.com> wrote:

Great clarice, let me know when u finish it.

Thanks,
Ray

[Lauren Fanuzzi]

Thanks Clarice. I am close to that so I must have went wrong somewhere in my calculations.

Lauren

[Sarah Greer]

What did you guys do with the cost of lost profit on the high end clubs?
I made that lost profit an expense.
I don't think it is included in yours, should I cut it out?
Sarah

[Lauren Fanuzzi]

I am not sure if this is right and based of Clarice's it's not, but the attached is what I got.

Lauren

[Clarice Ma]

Not of profit is not an expense. You can't expense that in income statement. It is just merely a future cash flow reduction...

On Mon, Apr 9, 2012 at 12:07 PM, Sarah Greer <skgr...@gmail.com> wrote:

[Sarah Greer]

lauren - yes, I have the same OCF as you - included the loss of expensive clubs as an annual expense
thanks...hopefully we can get more clarity on this baby in class

[Clarice]

Hi gang,

Good luck to tomorrow's accounting exam.

I fixed my FM homework typo on the fixed cost. 

I got the same cash flow as Lauren, but Different cf0. 

IRR = 30.87

Payback = 2.77

NPV =14836620

Sent from my iPhone