New product development and sales data in 7 years:
Development/tooling cost, first 3 years (yr 1– yr 3): total $5.13M. Sales in the following 4 years (yr 4– yr 7) : total 315 units. Unit price = $200k. Unit net profit = 15%.
??1) Calculate total revenue, annual net profit and total project net return at the end.
2) Assuming a one time Investment $5.13M at the beginning of the project, calculate: a) IRR? b) PV value (discount rate=12%)?
3) Assuming 3 equal investments of a total $5.13M over 2 years, calculate a) IRR? b) NPV (discount rate=14%)?
4) Assuming 3 equal investments of a total $5.13M over 3 years, calculate: IRR? (treat C1 as C0)
5) What is the ROI (SRR) for the project?
6) Assuming 5 equal investments of a total $5.13M over 4 years, calculate IRR?