Estimating NPV of ResAppDx

Hi All,

I love a good spreadsheet so was going to look at the NPV's associatedwith ResAppDx so I could do some sensitivities around changed input parameters both in peak year sales and revenue projections.

In setting this up I came across the following assumptions adopted byAcuity in the financial modelling, particularly around COGS and SG&A (I hadto look up what these mean) which equate to 55% of expectedrevenues.

Over the life of the economic modelling period (to 2041) this has apretty significant impact on cashflows and hence I am assuming valuations and has been applied to all 4 ofour products.

Cheers


Information from Acuity Report





COGs and SG&A definitions from a google search:



Impacts on ResAppDx cashflows (Note that I've initially adopted a discount rate of 8% with no CPI.)



If I was toassume $10M/ annum COGS/ SG&A associated with ResAppDx instead of 55% of revenue, this has asignificant impact on cashflows and NPV.