CAPITALBUDGETINGWORKSHEET

Equity Analysis of a Project

INPUTSHEET:USERENTERSALLBOLDNUMBERS
INITIALINVESTMENT

CASHFLOWDETAILS

DISCOUNTRATE

InitialInvestment=

$50,000

Revenuesinyear1=

Opportunitycost(ifany)=

$7,484

Var.Expensesas%ofRev=

Lifetimeoftheinvestment

10

SalvageValueatendofproject=
Deprec.method(1:St.line;2:DDB)=
TaxCredit(ifany)=
Otherinvest.(nondepreciable)=

$40,000
50%

1.Discountrate=

Fixedexpensesinyear1=

$10,000

Approach(1:Direct;2:CAPM)=

2a.Beta

40%

Taxrateonnetincome=

b.Risklessrate=

Ifyoudonothavethebreakdownoffixedandvariable

c.Marketriskpremium=

10%

expenses,inputtheentireexpenseasa%ofrevenues.

d.DebtRatio=

e.CostofBorrowing=
Discountrateused=

WORKINGCAPITAL
InitialInvestmentinWork.Cap=

$10,000

WorkingCapitalas%ofRev=

25%

Salvageablefractionatend=

100%

GROWTHRATES
1

Revenues

Donotenter

10.00%

10.00%

10.00%

10.00%

0.00%

0.00%

FixedExpenses

Donotenter

10.00%

10.00%

10.00%

10.00%

0.00%

0.00%

CAPITALBUDGETINGWORKSHEET
Default:Thefixedexpensegrowthrateissetequaltothegrowthrateinrevenuesbydefault.
YEAR
0
1
2
3
INITIALINVESTMENT
Investment
$50,000
TaxCredit
$5,000
NetInvestment
$45,000
+WorkingCap
$10,000
+Opp.Cost
$7,484
+Otherinvest.
$0
InitialInvestment
$62,484
SALVAGEVALUE
Equipment
WorkingCapital
OPERATINGCASHFLOWS
LifetimeIndex
Revenues
Var.Expenses
FixedExpenses
EBITDA
Depreciation
EBIT
Tax
EBIT(1t)
+Depreciation
Work.Cap
NATCF
($62,484)
DiscountFactor
1
DiscountedCF
($62,484)

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

$0
$0

1
$40,000
$20,000
$0
$20,000
$10,000
$10,000
$4,000
$6,000
$10,000
$0
$16,000
1.10685
$14,455

1
$44,000
$22,000
$0
$22,000
$8,000
$14,000
$5,600
$8,400
$8,000
$1,000
$15,400
1.2251169225
$12,570

1
$48,400
$24,200
$0
$24,200
$6,400
$17,800
$7,120
$10,680
$6,400
$1,100
$15,980
1.3560206657
$11,784

1
$53,240
$26,620
$0
$26,620
$5,120
$21,500
$8,600
$12,900
$5,120
$1,210
$16,810
1.5009114738
$11,200

1
$58,564
$29,282
$0
$29,282
$4,096
$25,186
$10,074
$15,112
$4,096
$1,331
$17,877
1.6612838648
$10,761

1
$58,564
$29,282
$0
$29,282
$3,277
$26,005
$10,402
$15,603
$3,277
$0
$18,880
1.8387920457
$10,268

1
$58,564
$29,282
$0
$29,282
$2,621
$26,661
$10,664
$15,996
$2,621
$0
$18,618
2.0352669758
$9,148

InvestmentMeasures
NPV=
$47,928
IRR=
23.55%

CAPITALBUDGETINGWORKSHEET
ROC=

BookValue(beginning)
Depreciation

60.12%

$50,000
$10,000

$40,000
$8,000

BOOKVALUE&DEPRECIATION
$32,000
$25,600
$6,400
$5,120

$20,480
$4,096

$16,384
$3,277

$13,107
$2,621

CAPITALBUDGETINGWORKSHEET
BV(ending)

$50,000

$40,000

$32,000

$25,600

$20,480

8
$16,384

$13,107

$10,486

CAPITALBUDGETINGWORKSHEET

SCOUNTRATE
2

proach(1:Direct;2:CAPM)=

10%

Discountrate=

0.9

Risklessrate=

8.00%

Marketriskpremium=

5.50%
30.00%

CostofBorrowing=

9.00%

countrateused=

10.69%

10

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

CAPITALBUDGETINGWORKSHEET

10

$0
$0

$0
$0

$10,000
$14,641

1
$58,564
$29,282
$0
$29,282
$486
$28,796
$11,518
$17,278
$486
$0
$17,764
2.2527352522
$7,885

1
$58,564
$29,282
$0
$29,282
$0
$29,282
$11,713
$17,569
$0
$0
$17,569
2.4934400139
$7,046

1
$58,564
$29,282
$0
$29,282
$0
$29,282
$11,713
$17,569
$0
$0
$17,569
2.7598640793
$15,294

10

CAPITALBUDGETINGWORKSHEET

$10,486
$486

$10,000
$0

$10,000
$0

11

CAPITALBUDGETINGWORKSHEET
$10,000

$10,000

$10,000

12