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Financial Inputs
Automation System Investment $125,000
(Total system price including all automation, peripheral
equipment, controls, engineering, build, set-up & run-off , and
installation supervision at end users)
Labor Savings
Current Number of Laborers per Shift: 1.0
Operators 1.0
Maintenance
Technicians
Material Handlers
Production Increase
Current Systems Annual Production 3,206,400
Production Rate Per Hour 960.0
Total Available Production Hours Per Year 4,000
Less Scheduled Downtime per shift (lunches, breaks, etc. - hrs) 1.00 (500)
Less Annual Unscheduled Downtime (avg. percentage) 4.0% (160)
Less Annual Change-Over (hours) 0
Net Annual Production Hours 3,340
Miscellaneous Saving
This Sheet To Be Used For Unique Savings Opportunities Specific To Your Application
Miscellaneous Saving #1 $0
Miscellaneous Saving #1 $0
Miscellaneous Saving #1 $0
Miscellaneous Savings: $0
Investment Summary
Total Initial Investment: $130,500
Total Annual Profit Increase (Before Income Taxes): $161,885
Weighted Average Cost of Capital / Discount Factor: 5.0%
Corporate Hurdle Rate: 15.0%
Financial Analysis
Today (Year 0) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
5 Year (-) (130,500) 0
7 Year (-) 0 0
Total Equipment Investment (130,500) 0 0 0 0 0 0 0
Cash Flow Data:
Operator Labor Savings 45,600 45,600 45,600 45,600 45,600 45,600 45,600
Annual lost time and disability savings 2,280 2,280 2,280 2,280 2,280 2,280 2,280
Workers Comp Premiums 593 593 593 593 593 593 593
System Preventive Maintenance (1,920) (1,920) (1,920) (1,920) (1,920) (1,920) (1,920)
Increased Annual Profit (from Production Increase) 115,200 115,200 115,200 115,200 115,200 115,200 115,200
Scrap Savings 132 132 132 132 132 132 132
Miscellaneous Savings 0 0 0 0 0 0 0
Depreciation (MACRS 7 on purchases made after 9/10/01 and Before 9/11/04) (52,204) (22,372) (15,977) (11,410) (8,158) (8,148) (8,158)
Net Pre-Tax Profit: 109,681 139,513 145,908 150,475 153,727 153,736 153,727
Income Taxes @ 37.3% (40,856) (51,969) (54,351) (56,052) (57,263) (57,267) (57,263)
Add Depreciation (+) 52,204 22,372 15,977 11,410 8,158 8,148 8,158
Net Annual Cash Flow (after tax): (130,500) 121,029 109,916 107,534 105,833 104,621 104,618 104,621
Cumulative Cash Flow: (130,500) (9,471) 100,445 207,979 313,812 418,433 523,051 627,673
Weighted Avg Cost of Capital @ 5.0% 1.00000 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068
Present Value of Annual Cash Flows(130,500) 115,265 99,697 92,892 87,069 81,974 78,068 74,352
Cumulative Discount Cash Flow (130,500) (15,235) 84,463 177,355 264,424 346,397 424,465 498,817
Financial Analysis
(continued)
Formula Checks: 0
(Should = 0 ) 0
7,332
7,712
Depreciation Rates: 0.4 0.17 0.12 0.09 0.06 0.06 0.06 (0.0312)
(Straight-Line - Change if Applicable)
Formula
Checker
Should = 0
Deprec. Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.
Investment Year 1 (52,204) (22,372) (15,977) (11,410) (8,158) (8,148) (8,158) 4,074.2100
Investment Year 2 0 0 0 0 0 0 0.0000
Investment Year 3 0 0 0 0 0 0.0000
Investment Year 4 0 0 0 0 0.0000
Investment Year 5 0 0 0 0.0000
Investment Year 6 0 0 0.0000
Investment Year 7 0 0.0000
Inflation Factors
Enter Rate 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%