In the NPVaudit worksheet, the Year 1 cost needs to be adjusted to achieve a total NPV of $100,000. The correct values for the Year 1 cost are as follows:
Year 10 Unit Sales: 10,000
Unit Price: $9.00
Unit Cost: $6.00
Revenues: $90,000.00
Costs: $60,000.00
Before Tax Profits: $30,000.00
Tax: $12,000.00
Aftertax Profits: $18,000.00
NPV: $70,054.34
The tax rate is 0.4, Year 1 sales are 10,000, sales growth is 10.00%, Year 1 price is $9.00, and the intrate is 0.15. The cost growth is 0.05 and the price growth is 0.03.
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