ABCDEFGHIJKLMNOPQRSTUVWXYZ
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Input Parameters
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Y0Y1Y2Y3Y4Y5
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Yearly Cost$240,000 $7,500 $7,500 $7,500 $7,500 $7,500
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Material Cost per Pair$95
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Material Cost Growth0%0%4%4%4%4%
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Salvage Value00000$15,000
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No. of Pairs220
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% Increase in Pairs2%
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Average Revenue Per Pair
$225 $225 $225 $225 $225
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Extra Appointments430
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Appointments Revenue
$110
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Appt Revenue Growth1%
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Annual Profit (Traditional)
$25,000
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Discount Rate8%
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Pairs Cacluations
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Y1Y2Y3Y4Y5
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Pairs220224.4228.888233.46576238.1350752
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Material Cost Calculations
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Y1Y2Y3Y4Y5
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Material Cost Per Pair$95 $98.80 $102.75 $106.86 $111.14
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Material Cost Total$20,900 $22,171 $23,519 $24,949 $26,466
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Total Cost Calculations
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Y1Y2Y3Y4Y5
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Material Cost Total0$20,900 $22,171 $23,519 $24,949 $26,466
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Yearly Cost$240,000 $7,500 $7,500 $7,500 $7,500 $7,500
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Total Cost per Year$240,000 $28,400 $29,671 $31,019 $32,449 $33,966
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Revenue Calculations
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Y1Y2Y3Y4Y5
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Revenue from Orthotics
$49,500 $50,490 $51,500 $52,530 $53,580
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Revenue Growth From Appt
$110 $111.10 $112.21 $113.33 $114.47
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Revenue from Appt$47,300 $47,773 $48,251 $48,733 $49,221
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Total Revenue per Year
$96,800 $98,263 $99,751 $101,263 $117,801
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Present Value Calculations
Traditional Model NPV Calculations for Comparison Purposes
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Years012345Years012345
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Free Cash Flow($240,000)$68,400 $68,592 $68,732 $68,814 $83,835
Free Cash Flow
$0 $25,000 $25,000 $25,000 $25,000 $25,000
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NPV of Cash Flows
$284,339.33
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NPV$44,339.33
NPV for Tradional Model
$99,817.75
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