0 1 2 3 4

Revenues 27,625,000 31,850,000 34,450,000 37,050,000

Variable costs -20,400,000 -23,520,000 -25,440,000 -27,360,000
Fixed costs -900,000 -900,000 -900,000 -900,000
Depreciation -4,200,000 -3,360,000 -2,688,000 -2,150,400
EBT 2,125,000 4,070,000 5,422,000 6,639,600
Tax -743,750 -1,424,500 -1,897,700 -2,323,860
Net income 1,381,250 2,645,500 3,524,300 4,315,740
Depreciation 4,200,000 3,360,000 2,688,000 2,150,400
OCF 5,581,250 6,005,500 6,212,300 6,466,140

Net cash flows

OCF 5,581,250 6,005,500 6,212,300 6,466,140
NWC spending -5,643,750 866,250 -390,000 -390,000 1,023,750
Capital spending -21,000,000
NCF -26,643,750 6,447,500 5,615,500 5,822,300 7,489,890

Quantity 85000 98000 106000 114000

NWC 5,643,750 4,777,500 5,167,500 5,557,500 4,533,750
Residual value 21,000,000 16,800,000 13,440,000 10,752,000 8,601,600

NPV -3,258,706
IRR 13.2%
 5
30,225,000
-22,320,000
-900,000
-4,401,600
2,603,400
-911,190
1,692,210
4,401,600
6,093,810

6,093,810
4,533,750
4,200,000
14,827,560

93000
0
4,200,000