KEY ASSUMPTIONS

CAPITAL BUDGETING Units

Investment (plant) 500,000 Euros'000
Turnover 325,000 Euros'000
Turnover growth before year 4 0% %
Turnover growth after 3.50% %
Working capital need (% of turnover) 35% %
COGS (% of turnover) 48% %
Indirect costs (fixed costs) L1 37,000 Euros'000
Indirect costs (fixed costs) L2 42,000 Euros'000
Corporate Tax 28% %
Years 10 Years
Depreciation 50,000 Euros'000
Discount rate 8.50% %
Target Payback 10 Years

Timeline 1 2
Ramp up 15% 55%
Base turnover 48750 178750
Turnover growth rate 0.00% 0.00%
Turnover 48750 178750
COGS (variable costs) 23400 85800
Gross Margin 25350 92950
Indirect costs (fixed costs) 37000 37,000
EBITDA -11650 55950
Minus D&A 50,000 50,000
EBIT -61650 5950
Corporate Tax -17262 1666
NOPAT -44388 4284
+/- Working Capital Change -17063 -45500
Recuperation of NWC
Operating Free Cash Flows -17063 -44388 -41216
Minus Capex -500,000
Plus D&A 50,000 50,000
Free Cash Flows -517063 5612 8784
NPV Project 54817
Discounted Cash Flows -517063 5172 7462
IRR 10.11%
Payback -517063 -511890 -504429
MIRR 9.60%
 KPI
NPV 54817
IRR 10.11%
MIRR 9.60%
PAYBACK 10

3 4 5 6 7 8 9 10
75% 100% 100% 100% 100% 100% 100% 100%
243750 325000 325000 325000 325000 325000 325000 325000
0.00% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%
243750 336375 348148 360333 372945 385998 399508 413491
117000 161460 167111 172960 179014 185279 191764 198476
126750 174915 181037 187373 193931 200719 207744 215015
37,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000
89750 132915 139037 145373 151931 158719 165744 173015
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
39750 82915 89037 95373 101931 108719 115744 123015
11130 23216 24930 26705 28541 30441 32408 34444
28620 59699 64107 68669 73391 78278 83336 88571
-22750 -32419 -4121 -4265 -4414 -4569 -4728 -4894
144722
5870 27280 59986 64404 68977 73709 78607 228399

50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

55870 77280 109986 114404 118977 123709 128607 278399

43741 55763 73146 70123 67213 64412 61716 123132

-460687 -404924 -331778 -261655 -194442 -130031 -68315 54817