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Exam2 Formula sheet

Exam2 Formula sheet - Cash flow from NWC = Change in NWC...

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Exam 2   Formula Sheet CFA = OCF + net capital investment + change in NWC inflow = positive sign outflow = negative sign OCF = EBIT taxes + depreciation OCF = [(S - C) * (1 - T)] + (D * T) Capital investment terminal cash flow = Selling price minus tax on gain = Selling price – [(selling price – book value) * tax rate] Net working capital = Current Assets – Current liabilities (operating items only, no financial items)
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Unformatted text preview: Cash flow from NWC = Change in NWC inflow = positive sign outflow = negative sign ∑ + = = n r CF NPV t t t ) 1 ( IRR = r, such that NPV = 0 MACRS Tables Year 3-year 5-year 7-year 1 33.33% 20% 14.29% 2 44.44% 32% 24.49% 3 14.82% 19.2% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.93% 7 8.93% 8 4.45% F301- Exam 2 Page 1 of 1...
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