Caledonia Products Integrative Problem

3. SciTronics had a total of $75000 of capital at year-end 2008 and earned, before

3. Estimate the project’s NPV. Would you recommend that Tucker Hansson proceed with the investment?

Based on Talbots filing of the 10-K, net sales in FY 2005 were $1,808,606 compared to $1,697,843 in FY 2004, an increase of 6.5%. Operating income was $152,148 in FY 2005, compared to $142,115 in FY 2004, an increase of 7.1%. Cash flow from operations was 12% of sales, or $211,438 for FY 2005, compared to $155,223 for FY 2004. Total revenues for the year rose 7% to approximately $1.8 billion. Comparable store sales also grew at a modest 2.6%. Comparable store sales were positive in each of the first seven months of FY 2005, driven by a healthy sales performance across the U.S..

$59k, compared to a budget of $83k. YTD non-operating revenue was $693k compared to a budget of $751k.

| |Net Operating Income |$6,600,000 |$12,600,000 |$15,000,000 |$7,800,000 |$3,000,000 | | | | | | | | |Taxes |($2,244,000) |($4,284,000) |($5,100,000) |($2,652,000) |($1,020,000) | |Net Operating Profit After Taxes |$4,356,000 |$8,316,000 |$9,900,000 |$5,148,000 |$1,980,000 | | | | | | | | |Net Income |$4,356,000 |$8,316,000 |$9,900,000 |$5,148,000 |$1,980,000 | |Year |Units Sold | |Price Per Unit Year 1 - 4 | |1 |70,000 | |$300 | |2 |120,000 | | | | | |3 |140,000 | |Price Per Unit Year Five | |4 |80,000

3. SciTronics had a total of $112, 000 (75,000+20,000+7,000+10,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) 16,000 (26,000-10,000)

Profit= 42360,739 + 1703,305 MTenure -4,57 MTenureSquared+ 3780,703 CTenure - 60,526 CTenureSquared + 3,997 Pop - 26561,276 Comp + 18091,05 Visibility + 36639,014 PedCount+ 58429,513

Year |# of Lots Sold |Ave. Lot Price |Gross Annual Cash Flows |Mark. $ Misc. costs |Developer's P&O |Net Annual Cash Flows |Discount Factors |PV of Cash Flows | |0 |0 | |0 |0 |0 |0 |1 |0 | |1 |10 |50000 |500000 |25000 |25000 |450000 |0.9091 |409095 | |2 |10 |50000 |500000 |25000 |25000 |450000 |0.8264 |371880 | |3 |10 |50000 |500000 |25000 |25000 |450000 |0.7513 |338085 | |4 |10 |50000 |500000 |25000 |25000 |450000 |0.683 |307350 | |5 |10 |50000 |500000 |25000 |25000 |450000 |0.6209 |279405 | |6 |10 |50000 |500000 |25000 |25000 |450000 |0.5645 |254025 | |7 |10 |50000 |500000 |25000 |25000 |450000 |0.5132 |230940 | |8 |10 |50000 |500000 |25000 |25000 |450000 |0.4665 |209925 | |9 |10 |50000 |500000 |25000 |25000 |450000 |0.4241 |190845 | |10 |10 |50000 |500000 |25000 |25000 |450000 |0.3855 |173475 | | | | | | | | |Total |2765025 | | | | | | | | |Rounded |2765000 | | | | | | | | |PV per Lot |27650 | |

Division Income Statement For the Quarter Ending June 30, 2013 Production: 25,000 units Sales (25,000 units) $2,500,000 Cost of goods sold 1,800,000 ----------- Gross profit 700,000 Selling & general expenses 350,000 Net income $350,000

1994 Liabilities and Equity Short-term borrowings Accounts payable Progress collections and price adjustments accrued Dividends payable Taxes accrued Other costs and expenses accrued Current liabilities Long-term borrowings Other liabilities Total liabilities Minority interest in equity of consolidated affiliates Preferred stock Common stock Amounts received for stock in excess of par value Retained earnings Deduct common stock held in treasury Total shareowners’ equity Total liabilities and equity $644.9 696.0 1,000.5 72.8 337.2 1,128.1 $3,879.5 1,195.2 518.9 5,593.6 $ 71.2 $ — $465.2 414.5 3,000.5 $3,880.2 (175.9 ) $3,704.3 $9,369.1 $665.2 673.5 718.4 72.7 310.0 1,052.6 $3,492.4 917.2 492.1 4,901.7 50.1 — $463.8 409.5 2,683.6 $3,556.9 (184.5 ) $3,372.4 $8,324.2 $ $120.6 376.2 300.5 58.7 318.3 392.6 $1,566.9 364.1 221.0 2,152.0 41.4 — $455.8 266.9 1,384.5 $2,107.2 — $2,107.0 $4,300.6 1993 1985

▪ Founded 1984 ▪ 2009 Revenue: $11.1 billion ▪ 2009 Net Income: $1.89 billion ▪ Employees: 12,000

Computed: PPE = $6876M / $21,695M = 31.7% Intangible assets = $4041M / $21,695M = 22% Computed: $3,374M / $4,841 = 70% Computed: Accounts payable = $4461M / $13,021M = 34.2% Long-term debt = $2651M / $13,021M = 20.4% Computed: Long-term investments = $8214M / $22,417M = 36.6% Current assets = $7171M / $22,417M = 32%

|  |  |Whole Company |  |% of Revenue |Teajon Branch |  |% of Revenue |

,000 30,000 0 $ $ $ $ 0 $ 2,500,000 $ 2,500,000 $ $ $ $ $ $ $ 500,000 30,000 405,000 90,000 345,000 345,000 1 435,000 174,000 261,000 500,000 $ $ $ $ $45 10 $12,000 $3,000 $3,000 5 $5,000 $2,500,000 $0 $85,000 5 0 $ 1 45 $ 36,000 $ 1,620,000 $ $ $ $ $ $ $ 10 360,000 144,000 36,000 60,000 85,000 610,000 1 $ $ $ $ $ $ $ 500,000 30,000 405,000 90,000 345,000 2 435,000 174,000 261,000 500,000 $ $ $ $ $ 2,000,000 Opportunity cost of capital (%) Corporate income tax rate (%) 2 45 36,000 $ 1,620,000 $ $ $ $ $ $ $ 10 360,000 144,000 36,000 60,000 85,000 610,000 2 $ $ $ $ $ $ $ 500,000 30,000 405,000 90,000 345,000 3 435,000 174,000 261,000 500,000 $ $ $ $ $ 1,500,000 $ 3 45 36,000 $ 1,620,000 $ $ $ $ $ $ $ 10 360,000 144,000 36,000 60,000 85,000 610,000 3 $ $ $ $ $ $ $ $ 500,000 500,000 30,000 405,000 90,000 345,000 4 435,000 174,000 261,000 500,000 $ $ $ $ $ 1,000,000 $ 4 45 36,000 $ 1,620,000 $ $ $ $ $ $ $ 10 360,000 144,000 36,000 60,000 85,000 610,000 4 $ $ $ $ $ $ $ $ 500,000 405,000 60,000 315,000 5 435,000 174,000 261,000 500,000 $ 12% 40% 5 45 36,000 $ 1,620,000 $ $ $ $ $ $ $ 10 360,000 144,000 36,000 60,000 85,000 610,000 5 Collection period (months) Payment period (months) 3 3 Production capacity (monthly) Equipment life (years) Inventory raw materials (monthly) 3,000 5 $30,000

sales and tax rate is the same as 1996, then we can get the net profit is x*7944-1195.5,