WFF5013_CFEstimation_Lecture

WFF5013_CFEstimation_Lecture - Workings: Total Depreciable...

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Workings: Total Depreciable asset/installed cost: Machine cost 105,000 5,000 110,000 Estimated selling price, at end 10,000 Annual Depreciation: (Installed cost - SV) / # of years 22,000 Accumulated depreciation ( at end of project):Annual depr x years 110,000 Book value: Initial cost - accumulated depr - Selling price (in this case,the machine SV) 10,000 Gain from sale 10,000 Tax on gain 40% 4,000 A-Tax proceeds from sale 6,000 Working capital investment: Current assets- Cash 10,000 Ac.Receivables 30,000 Inventory 10,000 50,000 Current Liabilities- Accruals 5,000 Ac. Payables 25,000 30,000 Net Operating Working Capital 20,000 I Net Initial Outlay 0 1 2 3 4 5 Machine cost (105,000) (5,000) TDA (110,000) Investment in WC (20,000) Net Investment (130,000) II Annual operating Cashflows Sales 250,000 250,000 250,000 250,000 250,000 Less: Operating expenses (200,000) (200,000) (200,000) (200,000) (200,000) EBITDA 50,000 50,000 50,000 50,000 50,000 Less: Depreciation expenses (22,000) (22,000) (22,000) (22,000) (22,000)
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This note was uploaded on 12/12/2011 for the course ECONOMICS 101 taught by Professor Thoman during the Spring '09 term at Abu Dhabi University.

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WFF5013_CFEstimation_Lecture - Workings: Total Depreciable...

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