financial management (problem 18-8)

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PROBLEM NO 18-8 PARTICULARS 1 2 3 4 REVENUE WITH POOL ( A ) NO OF MEMBERS 500 600 700 700 MEMBERSHIP FEE 450 450 450 450 REVENUE WITH POOL 225,000.00 270,000.00 315,000.00 315,000.00 REVENUE WITH OUT POOL ( B) NO OF MEMBERS 400 400 400 400 MEMBERSHIP FEE 250 250 250 250 REVENUE WITH POOL 100,000.00 100,000.00 100,000.00 100,000.00

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PROBLEM NO 18-8PARTICULARS 1 2 3REVENUE WITH POOL( A )NO OF MEMBERS 500 600 700MEMBERSHIP FEE 450 450 450REVENUE WITH POOL225,000.00270,000.00315,000.00 REVENUE WITHOUT POOL ( B)NO OF MEMBERS 400 400 400MEMBERSHIP FEE 250 250 250REVENUE WITH POOL100,000.00100,000.00100,000.00 4 5700 700450 450 315,000.00315,000.00 400 400250 250 100,000.00100,000.00 PROBLEM NO 18-8EN OF !EAR 0 1 2 3 4AITIONAL REVENUE125,000.00170,000.00215,000.00"""LESS# AITIONAL COST -120,000 -120,000 -120,000 -120,000TOTAL CASH INFLOWS5,000.0050,000.00$5,000.00 $5,000.00 SCRAPE VALUETOTAL CASH OUT FLOWS -500,000P V FACTOR 10% 1 0.$0$ 0.8264 0.7513 0.683PRESENT VALUE -5000004,545.0041,320.0071,373.50 64,885.00 NPV& TOTAL CASH INFLOWS - TOTAL OUT FLOWS 365,2$4.$0- 500,000.00 & -134706 RE'ECTE5 5* 215,000.00 -120,000 $5,000.00 200,000.00 0.620$2 0.620$2 58,$87.40124,184.00 NAME:MUHAMMAD IMRANSTUDENT ID: SP13-EX-0057SUBJECT: INANCIAL MANA!EMENTASSI!NMENT NO:PROBLEM NO "7EN OF !EAR 0 1 2 3SALE(S REVENUE 15,500,000.00 17,600,000.00 1$,360,000.00 LESS# COSTIRECT MATERIAL )3,720,000.00*)4,224,000.00* )46,464,000.00*VARIABLE PROUCTION O+HEA )1,860,000.00*)2,112,000.00* )23,232,000.00*VARIABLE SELLIN, AN AMIN E-PENSE )1,550,000.00*)1,760,000.00* )1,$36,000.00*FI-E COST )1,200,000.00* """ )1,200,000.00*EPRICIATION E-PENSE )1,400,000.00*)1,400,000.00* )1,400,000.00*TOTAL COST )$,730,000.00*)10,6$6,000.00* )74,232,000.00*EARNIN! BEORE TAX"5#"30#000$00"%#"&'#000$00&3#5&"#000$00 LESS# TA- RATE )50%* 12,615,000.00 14,148,000.00 46,7$6,000.00 EARNIN! ATER TAX1"#'15#000$001(#1(%#000$00('#7&'#000$00 A #EPRICIATION )TA- RATE 50%*700,000.00700,000.00700,000.00 TOTAL CASH INFLOWS 13,315,000.00 14,848,000.00 47,496,000.00 TOTAL CASH OUT FLOWS(7#000#000$00)P V FACTOR 40% 1 0.7143 0.510204 0.36443PRESENT VALUE(7,000,000.00)9,510,904.507,575,508.9917,308,967.28 NPV& TOTAL CASH INFLOWS - TOTAL OUT FLOWS ("#51(#"31- 7#000#000$00 &35#51(#"31$05ACCEPTED4 5 21,2$6,000.0023,427,200.001320 3200 42240001452 3200 4646400)5,110,400.00* )5,622,400.00* 15$7.2 3200 5111040)2,555,200.00* )2,811,200.00*)2,12$,600.00* )2,342,720.00*)1,200,000.00* """)1,400,000.00* )1,400,000.00*)12,3$5,200.00* )13,376,320.00*33#'&1#"00$00 3'#%03#5"0$00175'$&" 3"00 5'""1(( 16,845,600.0018,401,760.00 1'#%(5#'00$00 1%#(01#7'0$00 700,000.00 700,000.00 17,545,600.0019,101,760.00 1$32.612 3200 6184358.40.260308 0.185$3 2125.873 3200 68027$4.244,567,260.04 3,551,590.24 TOTAL OUT FLOWS7#000#000$00