A

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42

(in thousands of $)

B
2008
0

C
2009
1

D
2010
2

E
2011
3

F
2012
4

G
2013
5

H
2014
6

I
2015
7

Assumptions
Tax Rate
MACRS 10-year
WACC
Resale value of PPE
Balance Sheet Items
Net Working Capital
Net PPE

30.0%
10.0%

30.0%
18.0%

30.0%
14.4%

30.0%
11.5%

30.0%
9.2%

30.0%
7.4%

30.0%
6.6%

9.3%
$0

$5,000
$20,000

$5,000
$18,000

$5,000
$14,400

$5,000
$11,520

$5,000
$9,216

$5,000
$7,372

$5,000
$5,898

$0
$4,588

$22,000
$18,000
$2,000
$2,000

$22,000
$18,000
$3,600
$400

$22,000
$18,000
$2,880
$1,120

$22,000
$18,000
$2,304
$1,696

$22,000
$18,000
$1,844
$2,156

$22,000
$18,000
$1,474
$2,526

$22,000
$18,000
$1,310
$2,690

$600
$1,400

$120
$280

$336
$784

$509
$1,187

$647
$1,509

$758
$1,768

$807
$1,883

$20,000

$0

$0

$0

$0

$0

$0

$0
($1,376)

$5,000

$0

$0

$0

$0

$0

$0

($5,000)

($25,000)

$3,400

$3,880

$3,664

$3,491

$3,353

$3,242

$9,569

Cash Flow Forecasts

Sales Revenue
Operating Expense
Depreciation
Operating Profit (EBIT)
Taxes
Net Profit (EBIT(1-t))
Investment in PPE (CAPX)
Sale of PPE (Terminal value)
Investment in Working Capital (NWC)
Cash Flows
Net Present Value

($4,202.98)

A
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

(in thousands of $)

B
2008
0

C
2009
1

D
2010
2

E
2011
3

F
2012
4

G
2013
5

H
2014
6

I
2015
7

Assumptions
Tax Rate
MACRS percentages
WACC
Resale value of PPE
Depreciation (MACRS = 1)
Net Working Capital
Net PPE

35.0%
14.3%

35.0%
24.5%

35.0%
17.5%

35.0%
12.5%

35.0%
8.9%

35.0%
8.9%

35.0%
8.9%

$25,000
$85,710

$25,000
$61,220

$25,000
$43,730

$25,000
$31,240

$25,000
$22,310

$25,000
$13,380

$25,000
$4,450

$70,000
$49,000
$14,290
$6,710

$75,000
$52,500
$24,490
($1,990)

$80,000
$56,000
$17,490
$6,510

$85,000
$59,500
$12,490
$13,010

$90,000
$63,000
$8,930
$18,070

$95,000
$66,500
$8,930
$19,570

$100,000
$70,000
$8,930
$21,070

$2,349
$4,362

($696)
($1,294)

$2,279
$4,232

$4,554
$8,457

$6,325
$11,746

$6,850
$12,721

$7,375
$13,696

$25,000

$0

$0

$0

$0

$0

$0

$0

($125,000)

$18,652

$23,197

$21,722

$20,947

$20,676

$21,651

$22,626

8%
$53,984
$46,665

10%
$38,550
$31,075

12%
$25,268
$17,652

14%
$13,781
$6,035

16%
$3,796
($4,067)

11.5%
1
$25,000
$100,000

Cash Flow Forecasts

Sales Revenue
Operating Expense
Depreciation
Operating Profit (EBIT)
Taxes
Net Profit (EBIT(1-t))
Investment in PPE (CAPX)
Sale of PPE (Terminal value)
Investment in Working Capital (NWC)
Cash Flows
Net Present Value
IRR

$100,000

$13,242.87
13.7%
$13,242.87
$80,000
$90,000

Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

3
0.333
0.445
0.148
0.074
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000

5
0.200
0.320
0.192
0.115
0.115
0.058
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000

Recovery Period Class

7
10
0.143
0.100
0.245
0.180
0.175
0.144
0.125
0.115
0.089
0.092
0.089
0.074
0.089
0.066
0.045
0.066
0.000
0.066
0.000
0.066
0.000
0.033
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000

15
0.050
0.095
0.086
0.077
0.069
0.062
0.059
0.059
0.059
0.059
0.059
0.059
0.059
0.059
0.059
0.030
0.000
0.000
0.000
0.000
0.000

20
0.038
0.072
0.067
0.062
0.057
0.053
0.049
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.045
0.023

Q1
Q2

$ (4,203)
$ 14,692

Q3
Q4
Q5
Q6
Q7
Q8
Q9
Q10

$ 13,243
13.7%
$ 1,869
$ 1,996
$ 6,677
$ 3,955
$ (9,456)
$ 6,734