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7/30/2019 CASE-IF
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Capital BudgetiAnswer 2 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Demand - Entertainment produ - 180,000 180,000 180,000 180,000 180,000
price per unit - 4,594 4,594 4,594 4,594 4,594
revenue from agreement - 826,920,000 826,920,000 826,920,000 826,920,000 826,920,000
other retails 120,000 120,000 220,000 220,000 220,000 220,000price per unit 5,000 5,600 6,272 7,025 7,868 8,812
revenue from other retails 600,000,000 672,000,000 1,379,840,000 1,545,420,800 1,730,871,296 1,938,575,852
total revenue 600,000,000 1,498,920,000 2,206,760,000 2,372,340,800 2,557,791,296 2,765,495,852
variable cost per unit 3,500 3,920 4,390 4,917 5,507 6,168
total Variable cost 420,000,000 1,176,000,000 1,756,160,000 1,966,899,200 2,202,927,104 2,467,278,356
cost savings (32,400,000)
other Fixed expenses 25,000,000 28,000,000 31,360,000 35,123,200 39,337,984 44,058,542
depreciation 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000
total expense 442,600,000 1,234,000,000 1,817,520,000 2,032,022,400 2,272,265,088 2,541,336,899
EBT 157,400,000 264,920,000 389,240,000 340,318,400 285,526,208 224,158,953
tax rate(25%) 39,350,000 66,230,000 97,310,000 85,079,600 71,381,552 56,039,738
EAT 118,050,000 198,690,000 291,930,000 255,238,800 214,144,656 168,119,215
NCF 148,050,000 228,690,000 321,930,000 285,238,800 244,144,656 198,119,215
Remittance 148,050,000 228,690,000 321,930,000 285,238,800 244,144,656 198,119,215
WHT(10%) 14,805,000 22,869,000 32,193,000 28,523,880 24,414,466 19,811,921
Remittance after WHT 133,245,000 205,821,000 289,737,000 256,714,920 219,730,190 178,307,293
Salvage Value
exchange rate 0.02254 0.02209 0.02165 0.02121 0.02079 0.02037
CF to parent 3,003,342 4,546,421 6,272,057 5,446,070 4,568,230 3,632,900
PV 2,402,674 2,909,710 3,211,293 2,230,710 1,496,918 952,343
Initial inve 12,650,000
Commulative PV (10,247,326) (7,337,617) (4,126,323) (1,895,613) (398,695) 553,648
7/30/2019 CASE-IF
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ng AnalysisYear 7 Year 8 Year 9 Year 10
180,000 180,000 180,000 180,000
4,594 4,594 4,594 4,594
826,920,000 826,920,000 826,920,000 826,920,000
220,000 220,000 220,000 220,000
9,869 11,053 12,380 13,865
2,171,204,954 2,431,749,548 2,723,559,494 3,050,386,633
2,998,124,954 3,258,669,548 3,550,479,494 3,877,306,633
6,908 7,737 8,666 9,706
2,763,351,759 3,094,953,970 3,466,348,447 3,882,310,260
49,345,567 55,267,035 61,899,079 69,326,969
30,000,000 30,000,000 30,000,000 30,000,000
2,842,697,326 3,180,221,006 3,558,247,526 3,981,637,229
155,427,627 78,448,543 (7,768,032) (104,330,596)
38,856,907 19,612,136 (1,942,008) (26,082,649)
116,570,720 58,836,407 (5,826,024) (78,247,947)
146,570,720 88,836,407 24,173,976 (48,247,947)
146,570,720 88,836,407 24,173,976 (48,247,947)14,657,072 8,883,641 2,417,398 (4,824,795)
131,913,648 79,952,766 21,756,578 (43,423,152)
650,000,000
0.01997 0.01957 0.01918 0.01879
2,633,905 1,564,480 417,208 11,399,201
552,370 262,476 55,997 1,223,980
1,106,018 1,368,494 1,424,490 2,648,470
7/30/2019 CASE-IF
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Answer 3 Year 1 Year 2 Year 3
Demand - Entertainment product - 5,000 5,000
price per unit - 5,600 6,272revenue from agreement - 28,000,000 31,360,000
other retails 120,000 120,000 220,000
price per unit 5,000 5,600 6,272
revenue from other retails 600,000,000 672,000,000 1,379,840,000
total revenue 600,000,000 700,000,000 1,411,200,000
variable cost per unit 3,500 3,920 4,390
total Variable cost 420,000,000 490,000,000 987,840,000
cost savings (32,400,000)
other Fixed expenses 25,000,000 28,000,000 31,360,000
depreciation 30,000,000 30,000,000 30,000,000
total expense 442,600,000 548,000,000 1,049,200,000
EBT 157,400,000 152,000,000 362,000,000
tax rate(25%) 39,350,000 38,000,000 90,500,000
EAT 118,050,000 114,000,000 271,500,000
NCF 148,050,000 144,000,000 301,500,000
Remittance 148,050,000 144,000,000 301,500,000
WHT(10%) 14,805,000 14,400,000 30,150,000
Remittance after WHT 133,245,000 129,600,000 271,350,000
Salvage Value
exchange rate 0.023 0.02254 0.02209 0.02165
CF to parent 3,003,342 2,862,760 5,874,026PV 2,402,674 1,832,167 3,007,501
Initial investment 12,650,000
Commulative PV (10,247,326) (8,415,160) (5,407,658)
7/30/2019 CASE-IF
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Capital Budgeting AnalysisYear 4 Year 5 Year 6 Year 7 Year 8
5,000 5,000 5,000 5,000 5,000
7,025 7,868 8,812 9,869 11,05335,123,200 39,337,984 44,058,542 49,345,567 55,267,035
220,000 220,000 220,000 220,000 220,000
7,025 7,868 8,812 9,869 11,053
1,545,420,800 1,730,871,296 1,938,575,852 2,171,204,954 2,431,749,548
1,580,544,000 1,770,209,280 1,982,634,394 2,220,550,521 2,487,016,583
4,917 5,507 6,168 6,908 7,737
1,106,380,800 1,239,146,496 1,387,844,076 1,554,385,365 1,740,911,608
35,123,200 39,337,984 44,058,542 49,345,567 55,267,035
30,000,000 30,000,000 30,000,000 30,000,000 30,000,000
1,171,504,000 1,308,484,480 1,461,902,618 1,633,730,932 1,826,178,644
409,040,000 461,724,800 520,731,776 586,819,589 660,837,940
102,260,000 115,431,200 130,182,944 146,704,897 165,209,485
306,780,000 346,293,600 390,548,832 440,114,692 495,628,455
336,780,000 376,293,600 420,548,832 470,114,692 525,628,455
336,780,000 376,293,600 420,548,832 470,114,692 525,628,455
33,678,000 37,629,360 42,054,883 47,011,469 52,562,845
303,102,000 338,664,240 378,493,949 423,103,223 473,065,609
0.02121 0.02079 0.02037 0.01997 0.01957
6,430,148 7,040,890 7,711,578 8,448,054 9,256,7352,633,788 2,307,159 2,021,544 1,771,685 1,553,022
(2,773,870) (466,711) 1,554,833 3,326,518 4,879,541
7/30/2019 CASE-IF
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Year 9 Year 10
5,000 5,000
12,380 13,86561,899,079 69,326,969
220,000 220,000
12,380 13,865
2,723,559,494 3,050,386,633
2,785,458,573 3,119,713,602
8,666 9,706
1,949,821,001 2,183,799,521
61,899,079 69,326,969
30,000,000 30,000,000
2,041,720,081 2,283,126,490
743,738,493 836,587,112
185,934,623 209,146,778
557,803,869 627,440,334
587,803,869 657,440,334
587,803,869 657,440,334
58,780,387 65,744,033
529,023,482 591,696,300
650,000,000
0.01918 0.01879
10,144,659 23,334,7941,361,593 2,505,554
6,241,134 8,746,688
7/30/2019 CASE-IF
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Answer 4 Year 1 Year 2 Year 3
Demand - Entertainment product - 5,000 5,000
price per unit - 5,600 6,272
revenue from agreement - 28,000,000 31,360,000
other retails 120,000 120,000 220,000price per unit 5,000 5,600 6,272
revenue from other retails 600,000,000 672,000,000 1,379,840,000
total revenue 600,000,000 700,000,000 1,411,200,000
variable cost per unit 3,500 3,920 4,390
total Variable cost 420,000,000 490,000,000 987,840,000
cost savings (32,400,000)
other Fixed expenses 25,000,000 28,000,000 31,360,000
depreciation 30,000,000 30,000,000 30,000,000
total expense 442,600,000 548,000,000 1,049,200,000
EBT 157,400,000 152,000,000 362,000,000
tax rate(25%) 39,350,000 38,000,000 90,500,000
EAT 118,050,000 114,000,000 271,500,000
NCF 148,050,000 144,000,000 301,500,000
Remittance 148,050,000 144,000,000 301,500,000
WHT(10%) 14,805,000 14,400,000 30,150,000
Remittance after WHT 133,245,000 129,600,000 271,350,000
Salvage Value
exchange rate 0.023 0.02254 0.02209 0.02165
CF to parent 3,003,342 2,862,760 5,874,026
PV 2,402,674 1,832,167 3,007,501
Initial investment 12,650,000Commulative PV (10,247,326) (8,415,160) (5,407,658)
7/30/2019 CASE-IF
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Year 4 Year 5 Year 6 Year 7 Year 8
5,000 5,000 5,000 5,000 5,000
7,025 7,868 8,812 9,869 11,053
35,123,200 39,337,984 44,058,542 49,345,567 55,267,035
220,000 220,000 220,000 220,000 220,0007,025 7,868 8,812 9,869 11,053
1,545,420,800 1,730,871,296 1,938,575,852 2,171,204,954 2,431,749,548
1,580,544,000 1,770,209,280 1,982,634,394 2,220,550,521 2,487,016,583
4,917 5,507 6,168 6,908 7,737
1,106,380,800 1,239,146,496 1,387,844,076 1,554,385,365 1,740,911,608
35,123,200 39,337,984 44,058,542 49,345,567 55,267,035
30,000,000 30,000,000 30,000,000 30,000,000 30,000,000
1,171,504,000 1,308,484,480 1,461,902,618 1,633,730,932 1,826,178,644
409,040,000 461,724,800 520,731,776 586,819,589 660,837,940
102,260,000 115,431,200 130,182,944 146,704,897 165,209,485
306,780,000 346,293,600 390,548,832 440,114,692 495,628,455
336,780,000 376,293,600 420,548,832 470,114,692 525,628,455
336,780,000 376,293,600 420,548,832 470,114,692 525,628,455
33,678,000 37,629,360 42,054,883 47,011,469 52,562,845
303,102,000 338,664,240 378,493,949 423,103,223 473,065,609
0.02121 0.02079 0.02037 0.01997 0.01957
6,430,148 7,040,890 7,711,578 8,448,054 9,256,735
2,633,788 2,307,159 2,021,544 1,771,685 1,553,022
(2,773,870) (466,711) 1,554,833 3,326,518 4,879,541
7/30/2019 CASE-IF
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Year 9 Year 10
5,000 5,000
12,380 13,865
61,899,079 69,326,969
220,000 220,00012,380 13,865
2,723,559,494 3,050,386,633
2,785,458,573 3,119,713,602
8,666 9,706
1,949,821,001 2,183,799,521
61,899,079 69,326,969
30,000,000 30,000,000
2,041,720,081 2,283,126,490
743,738,493 836,587,112
185,934,623 209,146,778
557,803,869 627,440,334
587,803,869 657,440,334
587,803,869 657,440,334
58,780,387 65,744,033
529,023,482 591,696,300
0.01918 0.01879
10,144,659 11,119,556
1,361,593 1,193,953
6,241,134 7,435,087
7/30/2019 CASE-IF
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Answer 5 Year 1 Year 2 Year 3
Demand - Entertainment product - 5,000 5,000
price per unit - 5,600 6,272
revenue from agreement - 28,000,000 31,360,000
other retails 120,000 120,000 220,000price per unit 5,000 5,600 6,272
revenue from other retails 600,000,000 672,000,000 1,379,840,000
total revenue 600,000,000 700,000,000 1,411,200,000
variable cost per unit 3,500 3,920 4,390
total Variable cost 420,000,000 490,000,000 987,840,000
cost savings (32,400,000)
other Fixed expenses 25,000,000 28,000,000 31,360,000
depreciation 30,000,000 30,000,000 30,000,000
total expense 442,600,000 548,000,000 1,049,200,000
EBT 157,400,000 152,000,000 362,000,000
tax rate(25%) 39,350,000 38,000,000 90,500,000
EAT 118,050,000 114,000,000 271,500,000
NCF 148,050,000 144,000,000 301,500,000
Remittance 148,050,000 144,000,000 301,500,000
WHT(10%) 14,805,000 14,400,000 30,150,000
Remittance after WHT 133,245,000 129,600,000 271,350,000
Salvage Value
exchange rate 0.023 0.02185 0.02076 0.01972
CF to parent 2,911,403 2,690,172 5,350,920
PV 2,329,123 1,721,710 2,739,671
Initial investment 12,650,000Commulative PV (10,320,877) (8,599,167) (5,859,496)
7/30/2019 CASE-IF
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Year 4 Year 5 Year 6 Year 7 Year 8
5,000 5,000 5,000 5,000 5,000
7,025 7,868 8,812 9,869 11,053
35,123,200 39,337,984 44,058,542 49,345,567 55,267,035
220,000 220,000 220,000 220,000 220,0007,025 7,868 8,812 9,869 11,053
1,545,420,800 1,730,871,296 1,938,575,852 2,171,204,954 2,431,749,548
1,580,544,000 1,770,209,280 1,982,634,394 2,220,550,521 2,487,016,583
4,917 5,507 6,168 6,908 7,737
1,106,380,800 1,239,146,496 1,387,844,076 1,554,385,365 1,740,911,608
35,123,200 39,337,984 44,058,542 49,345,567 55,267,035
30,000,000 30,000,000 30,000,000 30,000,000 30,000,000
1,171,504,000 1,308,484,480 1,461,902,618 1,633,730,932 1,826,178,644
409,040,000 461,724,800 520,731,776 586,819,589 660,837,940
102,260,000 115,431,200 130,182,944 146,704,897 165,209,485
306,780,000 346,293,600 390,548,832 440,114,692 495,628,455
336,780,000 376,293,600 420,548,832 470,114,692 525,628,455
336,780,000 376,293,600 420,548,832 470,114,692 525,628,455
33,678,000 37,629,360 42,054,883 47,011,469 52,562,845
303,102,000 338,664,240 378,493,949 423,103,223 473,065,609
0.01873 0.01780 0.01691 0.01606 0.01526
5,678,205 6,027,194 6,399,240 6,795,781 7,218,352
2,325,793 1,974,991 1,677,522 1,425,179 1,211,039
(3,533,703) (1,558,712) 118,810 1,543,989 2,755,027
7/30/2019 CASE-IF
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Year 9 Year 10
5,000 5,000
12,380 13,865
61,899,079 69,326,969
220,000 220,00012,380 13,865
2,723,559,494 3,050,386,633
2,785,458,573 3,119,713,602
8,666 9,706
1,949,821,001 2,183,799,521
61,899,079 69,326,969
30,000,000 30,000,000
2,041,720,081 2,283,126,490
743,738,493 836,587,112
185,934,623 209,146,778
557,803,869 627,440,334
587,803,869 657,440,334
587,803,869 657,440,334
58,780,387 65,744,033
529,023,482 591,696,300
650,000,000
0.01450 0.01377
7,668,585 17,099,337
1,029,260 1,836,027
3,784,287 5,620,315
7/30/2019 CASE-IF
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20000000
15% 15%
3000000 17000000
2550000 450000 14450000
2167500 382500 67500 12282500 382500
1842375 57375 10125 10440125 325125
1566019 8606 1519 8874106 276356
1296978 1291 228 7542990 269041
1029034 194 34 6411542 267944
761255 29 5 5449811 267779
493501 4 1 4632339 267754
225750 1 0 3937488 267751
