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# 1 47,500,000 10,800,000 58,300,000 Contract Spot Total Initial NWC 2915000 CF today is: Equipment Land NWC Total Year 2 3 4 47,500,000 47,500,000...

Can you please calculate the Net Present Value with the information on the attached file?

Year 1 2 3 4 Contract 47,500,000 47,500,000 47,500,000 47,500,000 Spot 10,800,000 16,200,000 20,700,000 8,100,000 Total 58,300,000 63,700,000 68,200,000 55,600,000 Initial NWC 2915000 CF today is: Equipment -85,000,000.00 Land -7,000,000.00 NWC -2,915,000.00 Total -94,915,000.00 OCF Year 1 2 3 4 5 6 Sales 58,300,000 63,700,000 68,200,000 55,600,000 Less: Variable Cost 19,220,000 21,080,000 22,630,000 18,290,000 Less: Fixed Cost 4,300,000 4,300,000 4,300,000 4,300,000 2,800,000 7,500,000 Less: Depreciation 12,155,000 20,825,000 14,875,000 10,625,000 EBIT 22,625,000 17,495,000 26,395,000 22,385,000 -2,800,000 -7,500,000 Tax @ 38% 8,597,500 6,648,100 10,030,100 8,506,300 -1,064,000 -2,850,000 Net Income 14,027,500 10,846,900 16,364,900 13,878,700 -1,736,000 -4,650,000 Add: Depreciation 12,155,000 20,825,000 14,875,000 10,625,000 OCF 26,182,500 31,671,900 31,239,900 24,503,700 -1,736,000 -4,650,000 Year 1 2 3 4 Beginning WC 2,915,000 3,185,000 3,410,000 2,780,000 Ending WC 3,185,000 3,410,000 2,780,000 0 NWC CF -270,000 -225,000 630,000 2,780,000 Book Value of Equipment= 85,000,000 - 12,155,000 - 20,825,000 - 14,875,000 - 10,625,000 Book Value of Equipment= 26,520,000 Market Value of Equipment is 51,000,000 Taxes on sale of equipment= (51,000,000 - 26,520,000) (.38) = 9,302,400 After-tax salvage value= 51,000,000 - 9,302,400 After-tax salvage value= 41,967,600 Present Value of Future Cash Flows= 23,139,416 + 25,063,179 + 22,691,369 + 43,865,747 (984,312) (2,357,550)= Present Value of Future Cash Flows= 111,417,849 Profitability Index= Present Value of Future Cash Flows of 111,417,849/ Initial Capital Outlay of 94,915,000 Profitability Index=1.17 Net Cash Flow Year 0 1 2 3 4 5 6 Capital Spending -85,000,000 0 0 0 41,697,600 0 0 Opportunity -7,000,000 Cost NWC -2,915,000 -270,000 -225,000 630,000 2,780,000 OCF 26,182,000 31,671,900 31,239,900 24,503,700 -1,736,000 -4,650,000 Total Project CF -94,915,000 25,912,000 31,446,900 31,869,900 68,971,300 -1,736,000 -4,650,000 Net Present Value Year 0 1 2 3 4 5 6 OCF -94,915,000 25,912,000 31,446,900 31,869,900 68,971,300 -1,736,000 -4,650,000 PV Factor 12% 1 0.893 0.797 0.712 0.636 0.567 0.507 PV -94,915,000 23,139,416 25,063,179 22,691,369 43,865,747 -984,312 -2,357,550 NPV

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