Beruflich Dokumente
Kultur Dokumente
Cost to produce
Annual cost of direct material:
Need of 1,000,000 cans per year (Including Variable Cost
Annual cost of direct labor for new employees:
Wages
Health benefits
Other benefits
Total wages and benefits
Total annual production costs
Annual cost to purchase cans
Item
Cost of machine and training
Year 1 inflow
Year 2 inflow
Year 3 inflow
Year 4 inflow
Year 5 inflow
IRR
$
$
$
$
$
$
$
200,000
5
40,000
5,500,000
1,100,000
15,000
3
2,000
12.00
2,500
18%
0.25
0.05
0.45
12%
35%
Make
Purchase
330,000
$
$
$
$
72,000
7,500
12,960
92,460
422,460
495,000
Before Tax
Amount
$
$
Tax Effect
72,540
32,000
After Tax
Amount
65.00% $
47,151
35% $
11,200
###
(200000+12000)/61390years
3.7
* Tax effect on Annual Cash Savings is 1 * Tax effect on Depreciation is the tax rate
$
$
$
$
$
72,540
(32,000)
40,540
14,189
26,351
16.27%
Year
0
0
1-5
1-5
5
Before Tax
Amount
Tax %
$
(200,000)
$
(15,000)
$
72,540
$
32,000
$
40,000
After tax
Amount
###
$ (15,000)
65% $ 47,151
35% $ 11,200
$ 40,000
PV 12%
Factor
1
1
3.60478
3.60478
0.5674
Present
Value
###
$ (15,000)
$ 169,969
$ 40,374
$ 22,696
$ 18,039
Year
After Tax
Amount
$
(215,000)
$
58,351
$
58,351
$
58,351
$
58,351
$
98,351
15%