Académique Documents
Professionnel Documents
Culture Documents
Time Period
Land
Building
Equipment
Change in Net working Capital
FV(Land)(T2)
FV(Building)(T1)
Cash Inflows/outflows
PV(Building)(T1)
PV(Building/Equipment/Working Capital)(T2)
Cash Inflows/outflows
NPV
IRR
1999 2000 2001 2002 2003 2004 2005
0 1 2 3 4 5 6
1200000
4000000 4000000
10000000
6600000 396000 419760 444945.6 471642.3
12077323 11.5%
25%
2006 2007
7 8
499940.9
9078519 24163711
8578579 24163711
9359423
8578579 24163711 8832289
5972000
24163711
Expected Cash Flows for Simulation Exercise
Time 0 1
Fixed Capital
Land -1200000
Building -3587443.946
Equipment/Building -16569808.36
After tax Salvage Value
Price
Output
Revenues
Less:Variable Cost
Depreciation
Operating income before taxes
Taxes
Operating income after taxes
Add: Depreciation
NET INCOME
Changes in working Capital
After Tax Cash Flows -21357252.31 0
NPV @ 12% $22,478,870.01
IRR 28%
2 3 4 5 6 7 8
5972000
OCF
Project Life
Inflation
Price
Units
Revenue
Less:Variable cost
Less:Fixed Cost
Less:Dep
EBIT
Less:Taxes(40%)
Net Income
Ad:Dep
OCF
Terminal Cashflows
Working Capital Recovered
3 4 5 6 7 8
1.06 1.06 1.06 1.06 1.06
2200 2332 2471.92 2620.235 2777.449 2944.096
25000 25000 25000 25000 25000 25000
8832289
1500000
3272000
1200000 5972000
Changes In working Capital
2 3 4 5 6 7
Revenues 55000000 58300000 61798000 65505880 69436233 73602407
Change 0 3300000 3498000 3707880 3930353 4166174
Depreciation
Year 3 4 5 6 7 8
Building 126984.1 253968.3 253968.3 253968.3 253968.3 253968.3
Equipment 2000000 3200000 1920000 1152000 1152000 576000
8000000
Building 120000 240000 240000 240000 240000 240000
Equipment 2000000 3200000 1920000 1152000 1152000 576000
Total 2120000 3440000 2160000 1392000 1392000 816000
1320000
10000000
Cost Macrs Years Year dep Accumulated Depreciation
8000000 0.5 1 126984.1 126984.126984127
1 2 253968.3 380952.380952381
2 3 253968.3 634920.634920635
3 4 253968.3 888888.888888889
4 5 253968.3 1142857.14285714
5 6 253968.3 1396825.3968254
6 7 253968.3 1650793.65079365
7 8 253968.3 1904761.9047619
8 9 253968.3 2158730.15873016
9 10 253968.3 2412698.41269841
10 11 253968.3 2666666.66666667
11 12 253968.3 2920634.92063492
12 13 253968.3 3174603.17460317
13 14 253968.3 3428571.42857143
14 15 253968.3 3682539.68253968
15 16 253968.3 3936507.93650793
16 17 253968.3 4190476.19047619
17 18 253968.3 4444444.44444444
18 19 253968.3 4698412.6984127
19 20 253968.3 4952380.95238095
20 21 253968.3 5206349.2063492
21 22 253968.3 5460317.46031746
22 23 253968.3 5714285.71428571
23 24 253968.3 5968253.96825397
24 25 253968.3 6222222.22222222
25 26 253968.3 6476190.47619047
26 27 253968.3 6730158.73015873
27 28 253968.3 6984126.98412698
28 29 253968.3 7238095.23809523
29 30 253968.3 7492063.49206349
30 31 253968.3 7746031.74603174
31 32 253968.3 8000000
Total 31.5 Years
book value%age Per year Dep
7873016 1.59% Dep in Year 1(or .5 MACRS year)
7619048 3.17%
7365079 3.17%
7111111 3.17%
6857143 3.17%
6603175 3.17%
6349206 3.17%
6095238 3.17%
5841270 3.17%
5587302 3.17%
5333333 3.17%
5079365 3.17%
4825397 3.17%
4571429 3.17%
4317460 3.17%
4063492 3.17%
3809524 3.17%
3555556 3.17%
3301587 3.17%
3047619 3.17%
2793651 3.17%
2539683 3.17%
2285714 3.17%
2031746 3.17%
1777778 3.17%
1523810 3.17%
1269841 3.17%
1015873 3.17%
761904.8 3.17%
507936.5 3.17%
253968.3 3.17%
0 3.17%
253968.25397 7873016
126984.12698
Cost 10000000