ECON 134A-1

ECON 134A-1 - Project I Repair cost project without...

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Project I - Repair cost project without additional new engine and control system Cash flows in nominal terms 0 1 2 3 4 5 6 7 8 9 10 Net Present Value Revenue (after ie) 1,400,000.00 1,435,000.00 1,470,875.00 1,507,646.88 1,545,338.05 1,583,971.50 1,623,570.79 1,664,160.06 1,705,764.06 1,748,408.16 Operating Cost (after ie) (820,000.00) (1,181,000.00) (1,210,525.00) (1,240,788.13) (1,271,807.83) (1,303,603.02) (1,336,193.10) (1,369,597.93) (1,403,837.88) (1,438,933.82) (1,474,907.17) Depreciation * (117,260.00) (200,900.00) (143,500.00) (102,500.00) (72,980.00) (72,980.00) (72,980.00) (36,900.00) - - Opportunity Cost (179,000.00) Income before tax 101,740.00 23,575.00 86,586.88 133,339.05 168,755.02 174,798.40 180,992.86 223,422.18 266,830.23 273,500.99 Tax (35%) (35,609.00) (8,251.25) (30,305.41) (46,668.67) (59,064.26) (61,179.44) (63,347.50) (78,197.76) (93,390.58) (95,725.35) Income after tax 66,131.00 15,323.75 56,281.47 86,670.38 109,690.76 113,618.96 117,645.36 145,224.42 173,439.65 177,775.64 Depreciation* 117,260.00 200,900.00 143,500.00 102,500.00 72,980.00 72,980.00 72,980.00 36,900.00 - - Cash inflow/(outflow) 183,391.00 216,223.75 199,781.47 189,170.38 182,670.76 186,598.96 190,625.36 182,124.42 173,439.65 177,775.64 Present Value (999,000.00) 165,217.12 175,492.05 146,078.49 124,612.39 108,406.21 99,763.42 91,816.31 79,028.61 67,801.86
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This note was uploaded on 04/11/2008 for the course ECON 134 taught by Professor Mehra during the Spring '08 term at UCSB.

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ECON 134A-1 - Project I Repair cost project without...

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