Five Year Discounted Cash Flow Company XYZ can produce 5,000 widgets annually Each widget...

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Finance

Five Year Discounted Cash Flow

Company XYZ can produce 5,000 widgets annually

Each widget is sold for $20 each and the company can increase their price by $2 per widget annually

Cost of goods is 10% of Gross Sales annually

Shipping Expenses are $20,000 in year 1 and increase 5% per annum

Operating Expenses are $25,000 in year 1 and increases $1 per widget per annum

Please prepare a 5 year pro-forma showing the net income after all the expenses mentioned above have been accounted for each year.

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