I would like an income statement for tablet eperately. I would also like the pre
ID: 2716049 • Letter: I
Question
I would like an income statement for tablet eperately. I would also like the present Worth (PW) and IRR. Thanks.
Tablet Proposal Year 0 Year 3 Investment Depreciable Replacement Tablets $750.00 each nurse Yes Database Conversion $30,000.00 total cost Yes Nurse Training $500.00 each nurse No Staff Training $10,000.00 total cost No Nurse Staffing Year 0 Year 1 Year 2 Year 3 Nurses 40 40 40 40 Change in # of nursesNurses 0 0 0 0 Visits per week 30 32 34 35 Change in Visits per week 2 4 5 Weeks per year 48 48 48 Addl.Visits per year (calculated) 3,840 7,680 9,600 Nursing Salaries ea. incl. benefits $95,000 $95,000 $95,000 Office Staffing Added staff 1 1 1 Staff Salary incl. benefits $60,000 $60,000 $60,000 $60,000 Revenue Average revenue per visit $112.00 all years Cost per visit Travel cost $6.50 per visit all years Cloud Processing cost $3.00 per visit all years Supplies $8.00 per visit all years Annual Expenses Tablet Software Licenses $50.00 annually per nurse all years Site Office software $40,000.00 annually- all all years Site Maintenance contract $35,000.00 annually- all all years Wireless contract $500.00 Monthly per nurse all years Other Present Laptops Book Value $0.00 each Time horizon 3 Years Tax Rate 22% MARR 14% MACRS 3 yearsExplanation / Answer
Year 1 2 3 No of Visit per week 32 34 35 No of weeks 48 48 48 No of Visit per year 1536 1536 1536 3840 3840 3840 No of visit in a year 5376 5376 5376 Revenue per visit 112 112 112 Total Sales Revenue 602112 602112 602112 Variable cost: Travell cost @6.50 per visit 34944 34944 34944 Cloud Processing Cost@3per visit 16128 16128 16128 Supplies cost @8 per visit 43008 43008 43008 Tablet software license @50 per nurse 2000 2000 2000 Site ofice software 40000 40000 40000 Site Maintenance contract 35000 35000 35000 Wireless Contract $500/month per Nurse. 240000 240000 240000 Nurse Salaries 95000 95000 95000 Total Cost 506080 506080 506080 Net Income 96032 96032 96032 Less: Depreciation 8400 8400 8400 EBIT 87632 87632 87632 Tax 22% 19279.04 19279.04 19279.04 EAT 68352.96 68352.96 68352.96 Add: Depreciation 8400 8400 8400 Cashflows 76752.96 76752.96 76752.96 Initial Investment: Replacement Tablets @750 each nurse 30000 Database conversion 30000 Total 60000 Annual depreciation 8400 Cashflows Pv factor Present Present Value at discount rate: Year at 14% Value 64% 65.00% 66.00% 66.96% 67.00% 68.00% 69.00% 0 -90000 1.000000 -90000 -90000 -90000.00 -90000.00 -90000.00 -90000.00 -90000.00 -90000.00 1 76752.96 0.877193 67327.16 46800.585 46516.95 46236.72 45971.97 45959.86 45686.29 45415.95 2 76752.96 0.769468 59058.91 28536.942 28192.09 27853.45 27535.38 27520.87 27194.22 26873.34 3 76752.96 0.674972 51806.06 17400.575 17086.11 16779.19 16492.60 16479.56 16187.03 15901.39 Total 88192.13 2738.10 1795.15 869.36 -0.05 -39.71 -932.46 -1809.32 Answer: NPV 88192.13 IRR 66.96%