Sample Case

Sample Case - Year Investment Sales Cost Depreciation EBIT...

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Year 0 1 2 3 4 Investment $(240,000.00) Sales $250,000.00 $257,500.00 $265,225.00 $273,181.75 Cost $125,000.00 $128,750.00 $132,612.50 $136,590.88 Depreciation $60,000.00 $60,000.00 $60,000.00 $60,000.00 EBIT $65,000.00 $68,750.00 $72,612.50 $76,590.88 Taxes (40%) $26,000.00 $27,500.00 $29,045.00 $30,636.35 Net Cash Flow $39,000.00 $41,250.00 $43,567.50 $45,954.53 Depreciation $60,000.00 $60,000.00 $60,000.00 $60,000.00 Salvage Value $25,000.00 Tax on Salvage value $10,000.00 Working Capital $(30,000.00) $(900.00) $(927.00) $(954.81) $32,781.81 Net Operating Cash Flow $(270,000.00) $98,100.00 $100,323.00 $102,612.69 $153,736.34 Discounted Cash Flow (10%) $354,191.81 $89,181.82 $82,911.57 $77,094.43 $105,003.99 NPV $84,191.81 IRR 22.69% Profitability Index 1.31 Payback 0.70 $(171,900.00) $(71,577.00) $31,035.69 $184,772.03 2.70 years
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Year 0 1 2 3 4 Investment $(240,000.00) 875.00 Sales $175,000.00 $180,250.00 $185,657.50 $191,227.23 375.00 Cost $125,000.00 $128,750.00 $132,612.50 $136,590.88 Depreciation $60,000.00 $60,000.00 $60,000.00 $60,000.00 EBIT $(10,000.00) $(8,500.00) $(6,955.00) $(5,363.65) Taxes (40%) $(4,000.00) $(3,400.00) $(2,782.00) $(2,145.46) Net Cash Flow $(6,000.00) $(5,100.00) $(4,173.00) $(3,218.19) Depreciation $60,000.00 $60,000.00 $60,000.00 $60,000.00 Salvage Value $25,000.00 Tax on Salvage value $10,000.00 Working Capital $(21,000.00) $(630.00) $(648.90) $(668.37) $22,947.27 Net Operating Cash Flow $(261,000.00) $53,370.00 $54,251.10 $55,158.63 $94,729.08 Discounted Cash Flow (10%) $199,496.53 $48,518.18 $44,835.62 $41,441.50 $64,701.23 NPV $(61,503.47) IRR -0.49% Profitability Index 0.76 Payback 0.70 $(207,630.00) $(153,378.90) $(98,220.27) $(3,491.19) 2.70 years
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Year 0 1 2 3 4 Investment $(240,000.00) 1,000.00 Sales $200,000.00 $206,000.00 $212,180.00 $218,545.40 250.00 Cost $125,000.00 $128,750.00 $132,612.50 $136,590.88 Depreciation $60,000.00 $60,000.00 $60,000.00 $60,000.00 EBIT $15,000.00 $17,250.00 $19,567.50 $21,954.53 Taxes (40%) $6,000.00 $6,900.00 $7,827.00 $8,781.81 Net Cash Flow $9,000.00
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Sample Case - Year Investment Sales Cost Depreciation EBIT...

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