FI_515_Capital_Budgeting_Example_Spreadsheet(1)

FI_515_Capital_Budgeting_Example_Spreadsheet(1) -...

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Example Company * Notation for Change Cash Flows Before Taxes CF0 CF1 CF2 CF3 CF4 CF5 Year 0 1 2 3 4 5 Purchase Price (55,000) *Revenues - *Expenses 0 21,000 21,000 21,000 21,000 21,000 Depreciation #NAME? #NAME? #NAME? #NAME? #NAME? Salvage Value 25,000 10,000 Book Value 10,000 0 Gain (Loss) on Sale 15,000 10,000 *Working Capital (5,000) 5,000 Actual Cash Flows (35,000) 21,000 21,000 21,000 21,000 36,000 Cumulative Cash Flows (35,000) (14,000) 7,000 28,000 49,000 85,000 Note: Depreciation is a non-cash expense. Depreciation is based on straight-line. Discount Rate: 20.00% Tax Rate: 34.00% Cash Flows After Taxes CF0 CF1 CF2 CF3 CF4 CF5 Year 0 1 2 3 4 5 Capitalization (55,000) *Revenues - *Expenses 0 13,860 13,860 13,860 13,860 13,860 Depreciation (tax shield) #NAME? #NAME? #NAME? #NAME? #NAME? Salvage Value, net of taxes 19,900 6,600 *Working Capital (5,000) 5,000 Actual Cash Flows (40,100) #NAME? #NAME? #NAME? #NAME? #NAME? Cumulative Cash Flows (40,100) #NAME? #NAME? #NAME? #NAME? #NAME? Present Value of after-tax cash flows: (40,100) #NAME? #NAME? #NAME? #NAME? #NAME?
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Unformatted text preview: Cumulative PV of after-tax cash flows: (40,100) #NAME? #NAME? #NAME? #NAME? #NAME? NPV: #NAME? IRR: #NAME? Profitability Index: #NAME? AROR: #NAME? Payback (years): #NAME? Depreciation is based on MACRS. Discount Rate: #NAME? Tax Rate: #NAME? Cash Flows After Taxes CF0 CF1 CF2 CF3 CF4 CF5 Year 1 2 3 4 5 Capitalization #NAME? *Revenues - *Expenses 0 13,860 13,860 13,860 13,860 13,860 Depreciation (tax shield) #NAME? #NAME? #NAME? #NAME? #NAME? Salvage Value, net of taxes 19,900 #NAME? *Working Capital (5,000) 5,000 Actual Cash Flows #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? Cumulative Cash Flows #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? Present Value of after-tax cash flows: #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? Cumulative PV of after-tax cash flows: #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? NPV: #NAME? IRR: #NAME? Profitability Index: #NAME? AROR: #NAME? Payback (years): 2.15...
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This note was uploaded on 11/15/2010 for the course FINANCE FI515 taught by Professor Haertel during the Spring '10 term at DeVry Denver.

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