Case Winston Amp Holmes

Starting Year Current Year Sales Yorkville's share 1st year increase in sales 2-4 year 5 year Additional full time employee Wage rate/hr Additional part time employee Wage rate/hr Yorkville's increase in sq feet Yorkville's operating hrs/week no. of weeks/year Costs Electricity(PSFPM) Gas Water Rent increase Current rent Annual Maintenance Adv exp Dec in Subsequent yrs 2-6 opening party Inflation CCA on F&F Discount Rate Tax rate

Investments Contigency F&F Total Inv F&F Useful Life Dep per year salvage Value

Working Capital Gross Margin Inv Days of COGS Decrease in days New Inv days in COGS

1 99 6 5 10 08 4 1 58 % 45 % 15 % 2% 2 12 1 10 1 87 5 87 52

29 58 48 8

F/T employee P/T employee

1 0.25 0.5 38 % 17 63 0 4

10 85 7 6 4 52 4 0

dep tax outlays npv discounting

18 55 0 2 1 00 % 10 % 5 0 00 0 2% 20 %

Tax Rate

25

71 29 2 1 3.67 194256.4 71 29 2 1 59 71 6 8 1 16 74 3 1

10 00 0 0 1 20 00 0 0 1 30 00 0 0 10 years 11 75 0 0 2 5 00 0

4 6 .4 5 % 11 8 20 98

53.55%

Inflows Increased Sales COGS Contribution Inventory Outflows Annual Maintenance Elec Water Gas F/T wage P/T wage Advertising Rent Lost contri Grand opening Depreciation Income before Taxes Provision Before taxes Net Income

2958488

1997 1331319.6

1998 1531018

1999 1760670

712921.6458 819859.9 942838.9 618397.9542 711157.6 817831.3 194073.1147 223184.1 256661.7 117500 117500 117500 22500 22500 22500 11250 11250 11250 5625 5625 5625 108576 108576 108576 45240 45240 45240 185502 166951.8 150256.6 66996 66996 66996 19088 50000 117500 117500 117500 -131379 49019 172388 12254.71 43096.92 -131379 36764 129291

Outlays

Inflows

Depreciation Taxes Required Debt on Capital Present of Cash Inflows Discounting NPV

117500 NA

1331320 194073 Sales Cost of Sales Average Inventory Purchases Cogs

1331320 194073 812472 712921 1525393 518848.6458 604518.9542

117500 117500 12254.71 43096.92

Income before income tax

13879

2000 2001 2024770.697 2065266.111

1084264.708 1105950.002 940505.9886 959316.1084 295160.9483 301064.1673 117500 117500 22500 22500 11250 11250 5625 5625 108576 108576 45240 45240 135230.958 121707.8622 66996 66996

117500 117500 310088 342421 77522.00765 85605.31154 232566 256816

117500 77522.01

117500 85605.31

Inflows Increased S 2958488 COGS Contribution Inventory Outflows Annual Maintenance Elec Water Gas F/T wage P/T wage Advertising Rent Lost contri Grand opening Outlays Depreciation

1997 1331320

1998 #REF!

1999 #REF!

2000 #REF!

2001 #REF!

#REF! #REF! #REF!

#REF! #REF! #REF!

#REF! #REF! #REF!

#REF! #REF! #REF!

#REF! #REF! #REF!

117500 117500 117500 22500 22500 22500 11250 11250 11250 5625 5625 5625 108576 108576 108576 45240 45240 45240 185502 166951.8 150256.6 66996 66996 66996 #REF! 50000 #REF! 117500 #REF!

117500 117500 22500 22500 11250 11250 5625 5625 108576 108576 45240 45240 135231 121707.9 66996 66996

117500

117500

Taxes Required Debt on Capital NPV Discounting 1331320 194073 Inflows Sales Cost of Sales Average Inventory Purchases Cogs

1331320 194073 812472 712921 1525393 #REF!

117500

117500

117500