Vinyl Press

Vinyl Press plc (‘Vinyl’)is a UK based company that specialises in the manufacture and production of records.The company’s directors want to take advantage of the recent increase in salesof records, particularly among affluent middle-aged men.

The financial statementsfor Vinyl for the years ended 31 December 2017 and 2016 show the followinginformation:

Ms Spin, the FinanceDirector of Vinyl, identified that at present there are considerable delays inthe manufacture of records due to limited capacity.  Ms Spin wants to replace the existing recordpressing machines with ten new machines to offer faster production of recordsthan is currently available.

So she can present this information to the rest of Vinyl’sBoard, Ms Spin has compiled the following information:

1.     The record pressing machines used to manufacture the recordscost ￡125,000 each and ten of them will be purchased. The machines will lastfor 3 years, and will have a scrap value of ￡15,000 each at the end of year three.This is the expected life of the machinery. The company’s policy is todepreciate assets over their useful life using the straight-line method ofdepreciation.

2.     Extensive market research has been undertaken to ensurethere is sufficient demand for the records at a cost of ￡100,000. This will bepaid for at the beginning of financial year 2018.

3.     The records will be sold in batches of 1,000 todistributors/retail outlets. The selling price and costs per batch of the recordsare as follows:

Sellingprice                       ￡2,000

Rawmaterials                        ￡700 (plastic,sleeves)

Variableoverheads              ￡250

4.     The selling price per batch will rise by 4% per annum overthe next 3 years.

5.     The demand for the raw materials has increased in the pastfew years due to increased demand and production shortages. The directors areconcerned that inflation of the raw material cost will have an adverse effecton the project’s cash flows. The firm expects that the raw material cost per batchwill rise by 7% per annum over the next 3 years.

6.     All other costs will rise by 3% per annum.

7.     There will be no increase in the general company overheadsbecause of this project. However, ￡120,000 of these overheads will beapportioned to this project each year.

8.     Sales are expected to be:

Year1                  2,000 batches

Year2                  2,500 batches

Year3                  3,000 batches

9.     The cost of capital is currently 8% and this is afteradjusting for inflation which is expected to be 2.9%

10.  The company pays tax onits taxable profit at 20%. This is payable in the same year the profit isearned.

11.  Capital allowances arecurrently given at a reducing balance rate of 18%.

前面没什么用，，求解用这11个条件 列表求解净现值。。。

还有根据第九个9条件 解释一下费雪方程式。。这个cost of capital is currently 8%, 是属于money rate of return 还是real rate of return??

翻译了一下这11个条件是这样的

1。用于生产记录的记录机每台成本125000英镑，其中十台将被购买。这些机器将持续3年，到三年底将有15000英镑的报废价值。这是机器的预期寿命。公司的方针是用直线折旧法折旧资产的使用寿命。

2。已经进行了广泛的市场研究，以确保对这些记录有足够的需求，费用为100000英镑。这笔款项将于2018财政年度开始支付。

三.这些唱片将以1000批次的方式出售给分销商/零售店。每个批次的销售价格和成本如下：

售价2000英镑

原材料700英镑（塑料、袖子）

可变费用250英镑

4。未来3年，每批的销售价格每年将上涨4%。

5。由于需求增加和生产短缺，过去几年对原材料的需求增加了。董事们担心原材料成本的上涨会对项目的现金流产生不利影响。该公司预计，未来3年，每批原料成本每年将上涨7%。

6。所有其他费用每年将上涨3%。

7。由于这个项目，通用公司的费用不会增加。然而，￡120000这些费用将分摊到每一年的这个项目。

8。销售预计将：

第1年2000批

第2年2500批

第3年3000批

9。目前的资本成本是8%，这是在通胀预期调整后的2.9%。

10。公司以20%的应纳税利润纳税。这是在同年赚取利润。

11。目前资本减让率为18%。