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    Case Goodweek Tires Excel Outline

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    ycheikh26
    Goodweek Tires is analyzing the costs and profitability of entering the OEM and replacement tire markets over a 4 year period. Key inputs include price increases, cost increases, equipment costs, salvage values, tax rates, inflation, required returns and production growth rates. The analysis models revenues, costs, profits, cash flows, working capital and discounted cash flows for each year to calculate the net present value and internal rate of return of the investment.

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    Case Goodweek Tires Excel Outline

    Uploaded by

    ycheikh26
    10 views1 page
    Goodweek Tires is analyzing the costs and profitability of entering the OEM and replacement tire markets over a 4 year period. Key inputs include price increases, cost increases, equipment costs, salvage values, tax rates, inflation, required returns and production growth rates. The analysis models revenues, costs, profits, cash flows, working capital and discounted cash flows for each year to calculate the net present value and internal rate of return of the investment.

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    Case Goodweek Tires Excel Outline (1)

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    Goodweek Tires is analyzing the costs and profitability of entering the OEM and replacement tire markets over a 4 year period. Key inputs include price increases, cost increases, equipment costs, salvage values, tax rates, inflation, required returns and production growth rates. The analysis models revenues, costs, profits, cash flows, working capital and discounted cash flows for each year to calculate the net present value and internal rate of return of the investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views1 page

    Case Goodweek Tires Excel Outline

    Uploaded by

    ycheikh26
    Goodweek Tires is analyzing the costs and profitability of entering the OEM and replacement tire markets over a 4 year period. Key inputs include price increases, cost increases, equipment costs, salvage values, tax rates, inflation, required returns and production growth rates. The analysis models revenues, costs, profits, cash flows, working capital and discounted cash flows for each year to calculate the net present value and internal rate of return of the investment.

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    Chapter 6

    Goodweek Tires, Inc.

    Input area:

    Research and development Price increase above inflation


    Test marketing cost VC increase above inflation
    Initial equipment cost Marketing and general costs
    Equipment salvage value Tax rate
    Inflation rate
    OEM market: Required return
    Price Initial NWC
    Variable cost NWC percentage of sales
    Automobile production
    Growth rate Year 1 depreciation
    Market share Year 2 depreciation
    Year 3 depreciation
    Replacement market: Year 4 depreciation
    Price
    Variable cost
    Market sales
    Growth rate
    Market share

    Output area:

    Nominal price increase 4.25%


    Nominal VC increase 4.25%

    Year 0 Year 1 Year 2 Year 3 Year 4


    OEM:
    Automobiles sold - - - -
    Tires for automobiles sold - - - -
    SuperTread tires sold - - - -
    Price $ - $ - $ - $ -

    Replacement market:
    Total tires sold in market - - - -
    SuperTread tires sold - - - -
    Price $ - $ - $ - $ -

    Revenue:
    OEM market $ - $ - $ - $ -
    Replacement market - - - -
    Total $ - $ - $ - $ -

    Variable costs:
    OEM market $ - $ - $ - $ -
    Replacement market - - - -
    Total $ - $ - $ - $ -

    Revenue $ - $ - $ - $ -
    Variable costs - - - -
    Marketing and general costs - - - -
    Depreciation - - - -
    EBT $ - $ - $ - $ -
    Tax - - - -
    Net income $ - $ - $ - $ -
    OCF $ - $ - $ - $ -

    New working capital:


    Beginning 0 $ - $ - $ - $ -
    Ending - - - - -
    NWC cash flow $ - $ - $ - $ - $ -

    Book value of equipment $ - $ - $ - $ - $ -

    Aftertax salvage value:


    Market value $ -
    Book Value $ -
    Gain (loss on sale) $ -
    Taxes $ -
    Total CF $ -

    Year 0 Year 1 Year 2 Year 3 Year 4


    Operating cash flow $ - $ - $ - $ -
    Capital spending $ - -
    Net working capital - - - - -
    Total cash flows $ - $ - $ - $ - $ -

    Discounted cash flow $ - $ - $ - $ - $ -

    NPV $ -
    IRR #NUM!

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