Escolar Documentos
Profissional Documentos
Cultura Documentos
1 Data :
Machine Price / Investment
Depreciation
Cash Cost Saving
Selling Price
Tax on Gain of Machine Sale
Tax Rate
Discount rate
Solution :
Cash Flow
Year
Investment
Cash Cost Saving
Depreciation
EBIT
Taxes
Net Income
Depreciation
OCF
After Tax Salvage Value
After Tax Total Net CF
Present Value
NPV
IRR
Payback Period
0
(500,000.00)
(500,000.00)
(500,000.00)
(500,000.00)
(500,000.00)
(500,000.00)
169,459.85
20%
3.13
1
200,000.00
(100,000.00)
100,000.00
40,000.00
60,000.00
100,000.00
160,000.00
160,000.00
148,148.15
(500,000.00)
(100,000.00)
200,000.00 per year
75,000.00
40%
40%
8%
200,000.00
(100,000.00)
100,000.00
40,000.00
60,000.00
100,000.00
160,000.00
200,000.00
(100,000.00)
100,000.00
40,000.00
60,000.00
100,000.00
160,000.00
200,000.00
(100,000.00)
100,000.00
40,000.00
60,000.00
100,000.00
160,000.00
160,000.00
137,174.21
160,000.00
127,013.16
160,000.00
117,604.78
200,000.00
(100,000.00)
100,000.00
40,000.00
60,000.00
100,000.00
160,000.00
45,000.00
205,000.00
139,519.56
Salvage Value
2 Data :
Machine A Price
Lifetime
Salvage Value
Depreciation
Tax
(300,000.00)
15 years
20,000 per year
40%
Machine B Price
Lifetime
Salvage Value
Saving of Labor
Out of Pocket Cash Saving
Saving by space
Depreciation
Discount Rate
Book value
Sell price of old machine
Solution :
(480,000.00)
12 years
135,000.00 per year
25,000.00 per year
3,000.00 per year
40,000 per year
7%
240,000.00
100,000.00
$
$
$
$
$
1
4
20,000.00
8,000.00
8,000.00
7,476.64
63,541.49
$
$
$
$
2
5
20,000.00
8,000.00
8,000.00
6,987.51
0
$ (480,000.00)
$ 100,000.00
$ 135,000.00
$
25,000.00
$
3,000.00
$
(40,000.00)
$ (140,000.00)
$
(17,000.00)
$
(6,800.00)
$
(10,200.00)
40,000
140,000.00
$ (380,000.00) $ 169,800.00
$ (380,000.00) 158691.588785
$ 576,214.15
$
$
$
$
3
6
20,000.00
8,000.00
8,000.00
6,530.38
$
$
$
$
4
7
20,000.00
8,000.00
8,000.00
6,103.16
$
$
$
$
5
8
20,000.00
8,000.00
8,000.00
5,703.89
$
$
$
$
6
9
20,000.00
8,000.00
8,000.00
5,330.74
$ 135,000.00 $
$ 25,000.00 $
$
3,000.00 $
$ (40,000.00) $
135,000.00
25,000.00
3,000.00
(40,000.00)
$ 135,000.00 $ 135,000.00
$ 25,000.00 $ 25,000.00
$
3,000.00 $
3,000.00
$ (40,000.00) $ (40,000.00)
$ 123,000.00 $
$ 49,200.00 $
$ 73,800.00 $
40,000
$ 113,800.00 $
99397.327277
$
$
$
$
7
10
20,000.00
8,000.00
8,000.00
4,982.00
$
$
$
$
8
11
20,000.00
8,000.00
8,000.00
4,656.07
$ 135,000.00 $ 135,000.00
$ 25,000.00 $ 25,000.00
$
3,000.00 $
3,000.00
$ (40,000.00) $ (40,000.00)
$
$
$
$
9
12
20,000.00
8,000.00
8,000.00
4,351.47
$
$
$
$
10
13
20,000.00
8,000.00
8,000.00
4,066.79
$
$
$
$
11
14
20,000.00
8,000.00
8,000.00
3,800.74
10
$ 135,000.00 $ 135,000.00
$ 25,000.00 $ 25,000.00
$
3,000.00 $
3,000.00
$ (40,000.00) $ (40,000.00)
$ 135,000.00
$ 25,000.00
$
3,000.00
$ (40,000.00)
$
$
$
$
12
15
20,000.00
8,000.00
8,000.00
3,552.10
11
12
$ 135,000.00 $ 135,000.00
$ 25,000.00 $ 25,000.00
$
3,000.00 $
3,000.00
$ (40,000.00) $ (40,000.00)
$ 123,000.00 $ 123,000.00
$ 49,200.00 $ 49,200.00
$ 73,800.00 $ 73,800.00
40,000
40,000
$ 113,800.00 $ 113,800.00
54065.560229 50528.560962
Units
Unit price
Capex
Depreciation
Changes in working capital
Period
1998
1000
20.00 $
400
1057
-108
Sales
COGS
depreciation
Selling, general & adm
EBIT
income tax
Net income
Add: depreciation
OCF
Less: Capex
Changes in WC
FCF
PV
npv
$
$
$
$
$
$
$
$
$
$
$
$
$
$
20,000.00
10,000.00
1,057.00
7,000.00
1,943.00
777.20
1,165.80
1,057.00
2,222.80
400.00
(108.00)
1,714.80
1,531.07
8,846.23
If we discontinued at 1998
Recovery of WC
sale of fixed assets
tax shield
PV of CF
$
$
$
$
3,592.00
3,000.00
1,600.00
8,192.00
1999
1000
20.60
400
1124
-111
2
$
$
$
$
$
$
$
$
$
$
$
$
$
20,600.00
10,300.00
1,124.00
7,210.00
1,966.00
786.40
1,179.60
1,124.00
2,303.60
400.00
(111.00)
1,792.60
1,429.05
2000
1000
21.00 $
400
1204
-79
3
$
$
$
$
$
$
$
$
$
$
$
$
$
21,000.00
10,609.00
1,204.00
7,426.30
1,760.70
704.28
1,056.42
1,204.00
2,260.42
400.00
(79.00)
1,781.42
1,267.98
2001
1000
21.15 $
400
1304
-40
4
$
$
$
$
$
$
$
$
$
$
$
$
$
21,150.00
10,927.27
1,304.00
7,649.09
1,269.64
507.86
761.78
1,304.00
2,065.78
400.00
(40.00)
1,625.78
1,033.22
2002
1000
21.25 $
300
1404
-33
5
$
$
$
$
$
$
$
$
$
$
$
$
$
21,250.00
11,255.09
1,404.00
7,878.56
712.35
284.94
427.41
1,404.00
1,831.41
300.00
(33.00)
1,498.41
850.24
2003
1000
21.25
200
1504
-17
6
$
$
$
$
$
$
$
$
$
$
$
$
$
21,250.00
11,592.74
1,504.00
8,114.92
38.34
15.34
23.00
1,504.00
1,527.00
200.00
(17.00)
1,310.00
663.69
2004
1000
21.00 $
0
1504
23
2005
0
19.00
1000
3957
7
$
$
$
$
$
$
$
$
$
$
$
$
$
21,000.00
11,940.52
1,504.00
8,358.37
(802.89)
(321.16)
(481.73)
1,504.00
1,022.27
23.00
1,045.27
472.83
8
$
$
$
$
$
$
$
$
tax
discount rate
3,957.00
3,957.00
1,598.17
40%
12%
Units
Unit Price
working capital
changes
Investment
Sales
COGS
depreciation
Selleing, gen & adm
Special promotion
EBIT
Tax
Net income
Add: depreciation
Changes in WC
FCF
PV
NPV
1998
250
20.00 $
1999
250
20.60 $
2000
250
21.00 $
2001
250
21.15
1998
925
0
1999
953
-28
2000
973
-20
2001
983
-10
1
1998
2
1999
3
2000
5,150.00
2,575.00
200.00
1,288.00
1,000.00
87.00
34.80
52.20
200.00
(28.00)
224.20
178.73
$ 5,250.00
$ 2,652.00
$
200.00
$ 1,326.00
$
500.00
$
572.00
$
228.80
$
343.20
$
200.00
$
(20.00)
$
523.20
$
372.40
$ (1,400.00)
$
$
$
$
$
$
$
$
$
$
$ (1,400.00) $
$ (1,400.00) $
$ 1,246.88
5,000.00
2,500.00
200.00
1,250.00
1,000.00
50.00
20.00
30.00
200.00
230.00
205.36
$
$
$
$
$
$
$
$
$
$
$
$
2002
250
21.25 $
2003
250
21.25 $
2004
250
21.00 $
2005
0
19.00
2002
991
-8
2003
995
-4
2004
989
6
2005
0
989
4
2001
5
2002
6
2003
7
2004
$ 5,287.50 $ 5,312.50
$ 2,732.00 $ 2,814.00
$
200.00 $
200.00
$ 1,366.00 $ 1,407.00
$ 5,312.50 $ 5,250.00
$ 2,898.00 $ 2,985.00
$
200.00 $
200.00
$ 1,449.00 $ 1,493.00
$
$
$
$
$
$
$
$
$
$
$
$
$
$
989.50
395.80
593.70
200.00
(10.00)
783.70
498.06
$
$
$
$
$
$
$
891.50
356.60
534.90
200.00
(8.00)
726.90
412.46
765.50
306.20
459.30
200.00
(4.00)
655.30
332.00
$
$
$
$
$
$
$
investment
n
depreciation
Tax
discount rate
8
2005
572.00
228.80
343.20
200.00
6.00 $ 989.00
549.20 $ 989.00
248.43 $ 399.44
1400
7
200
40%
12%
Investment
Total cost
discount rate
$
$
350,000,000.00
80,000,000.00
13%
Year
Investment
Total Cost
CF (most likely)
OCF
PV
NPV
0
1
$ (350,000,000.00)
$ (80,000,000.00)
$
$ (430,000,000.00) $
$ (430,000,000.00) $
$ (113,343,437.66)
Year
Investment
Total Cost
CF (Highly successful)
OCF
PV
NPV
0
1
$ (350,000,000.00) $ (350,000,000.00)
$ (80,000,000.00)
$
98,000,000.00
$ (430,000,000.00) $ (252,000,000.00)
$ (430,000,000.00) $ (223,008,849.56)
$ (106,421,388.59)
Year
Investment
Total Cost
CF (worst case)
OCF
PV
NPV
0
1
$ (350,000,000.00) $
$ (80,000,000.00)
$
$ (430,000,000.00) $
$ (430,000,000.00) $
$ (279,557,522.12)
49,000,000.00
49,000,000.00
43,362,831.86
170,000,000.00
170,000,000.00
150,442,477.88
10
11
12
13
10
11
12
13
14
15
$ 49,000,000.00 $ 49,000,000.00
$ 49,000,000.00 $ 49,000,000.00
$
8,853,150.99 $
7,834,646.90
14
15
$ 98,000,000.00 $ 98,000,000.00
$ 98,000,000.00 $ 98,000,000.00
$ 17,706,301.98 $ 15,669,293.79
a
CF
d
PV of Perpetuity
b
$
100,000.00
10%
$ 1,000,000.00
CF
d
n
PV of Perpetuity
CF
d
g
n
PV of Perpetuity
c
CF
d
g
PV of Perpetuity
50,000.00
10%
4%
833,333.33
b
$ 100,000.00
10%
4
$ 683,013.46
d
$
50,000.00
10%
4%
4
$ 569,177.88
Tax
35%
g
inflation
discount rate
4%
2%
10%
1
1999
61,000.00
29,890.00
4,000.00
21,010.00
6,100.00
2,135.00
3,965.00
4,000.00
7,965.00
4,938.00
(516.00)
2,511.00
2,511.00
2,414.42
124,050.96
Sales
COGS
Depreciation
Selling & adm
EBIT
Tax
Net income
Add: depreciation
OCF
Less: capex
changes in WC
FCF
FCF to infinity
PV
NPV
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 124,050,956.15
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2
2000
63,440.00
30,768.00
4,160.00
21,570.00
6,942.00
2,429.70
4,512.30
4,160.00
8,672.30
5,136.00
(537.00)
2,999.30
2,999.30
2,773.02
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3
2001
65,978.00
31,669.00
4,326.00
22,103.00
7,880.00
2,758.00
5,122.00
4,326.00
9,448.00
5,341.00
(558.00)
3,549.00
3,549.00
3,155.05
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4
2002
68,617.00
32,593.00
4,499.00
22,232.00
9,293.00
3,252.55
6,040.45
4,499.00
10,539.45
5,555.00
(581.00)
4,403.45
4,403.45
3,764.09
$
$
$
$
$
$
$
$
$
$
$
$
$
$
5
2003 to infinity
71,361.00
33,896.00
4,679.00
22,407.00
10,379.00
3,632.65
6,746.35
4,679.00
11,425.35
5,777.00
(604.00)
5,044.35 $ 131,153.10
136,197.45
111,944.38