Revenue

Operating expenses
Tax depreciation
Pre-tax profit
Company tax 35%
After tax income
Plus: Depreciation
Capex
Cash flow
PV of cash flow @8.29%
NPV

$454,762

Revenue
Operating expenses
Tax depreciation
Pre-tax profit
Company tax 35%
After tax income
Plus: Depreciation
Capex
Cash flow
PV of cash flow @8.29%
NPV

$791,164

assumptions: use 7 year MACRS table and old plane not used ev

Revenue
Operating expenses
Tax depreciation
Pre tax profit
Company tax 35%
After tax income
Plus: Depreciation
Capex
Cash flow
PV of cash flow @8.29%
NPV

-$3,000,000

$1,723,676
Payment With control
Payment new plane

NPV-Without c
0

0.5

-$820,000
-$820,000
-$820,000

1.5
$1,400,000
-$1,181,000
-$117,178
$101,822
$35,637.70
$66,184
$117,178

2.5
$1,400,000
-$1,181,000
-$200,818
$18,182
$6,363.70
$11,818
$200,818

$183,362
$169,325

$212,636
$181,326

NPV-With
0

0.5

-$1,420,000
-$1,420,000
-$1,420,000

1.5
$1,400,000
-1,020,000
-$202,918
$177,082.00
$61,978.70
$115,103.30
$202,918

2.5
$1,400,000
-1,020,000
-$347,758
$32,242.00
$11,284.70
$20,957.30
$347,758

318,021
293,676

368,715
314,423

year MACRS table and old plane not used even in year 0
0

0.5

-$1,500,000
-$1,500,000
-1,500,000

$106,566.36
$179,365.63

1.5
$1,500,000
-$935,000
-$428,700
$136,300
$47,705
$88,595
428700
-$1,500,000
-$982,705
-907,475 $

2.5
$1,500,000
-$885,000
-$734,700
-$119,700
-$41,895
-$77,805
734700
$656,895
560,169

NPV-Without control system

3.5
4.5
$1,400,000
$1,400,000
-$1,181,000
-$1,181,000
-$143,418
-$102,418
$75,582
$116,582
$26,453.70
$40,803.70
$49,128
$75,778
$143,418
$102,418

5.5
$1,400,000
-$1,181,000
-$73,226
$145,774
$51,020.90
$94,753
$73,226

6.5
$1,400,000
-$1,181,000
-$73,144
$145,856
$51,049.60
$94,806
$73,144

$178,196
$129,582

$167,979
$112,801

$167,950
$104,148

NPV-With Control
3.5
4.5
$1,400,000
$1,400,000
-1,020,000
-1,020,000
-$248,358
-$177,358
$131,642.00
$202,642.00
$46,074.70
$70,924.70
$85,567.30
$131,717.30
$248,358
$177,358

5.5
$1,400,000
-1,020,000
-$126,806
$253,194.00
$88,617.90
$164,576.10
$126,806

6.5
$1,400,000
-1,020,000
-$126,664
$253,336.00
$88,667.60
$164,668.40
$126,664

291,382
195,669

291,332
180,659

$192,546
$151,625

333,925
262,957

309,075
224,756

New Plane
3.5
$1,500,000
-$885,000
-$524,700
$90,300
$31,605
$58,695
524700

$583,395
459,407 $

4.5
$1,500,000
-$885,000
-$374,700
$240,300
$84,105
$156,195
374700
$530,895
386,060 $

5.5
$1,500,000
-$885,000
-$267,900
$347,100
$121,485
$225,615
267900
$493,515
331,405 $

6.5
$1,500,000
-$885,000
-$267,600
$347,400
$121,590
$225,810
267600
$493,410
305,969

7.5
$1,400,000
-$1,181,000
-$73,226
$145,774
$51,020.90
$94,753
$73,226

8.5
$1,400,000
-$1,181,000
-$36,572
$182,428
$63,849.80
$118,578
$36,572

9.5
$1,400,000
-$1,181,000
$0
$219,000
$76,650.00
$142,350
$0

10.5
$1,400,000
-$1,181,000
$0
$219,000
$76,650.00
$142,350
$0

11.5
$1,400,000
-$1,181,000
$0
$219,000
$76,650.00
$142,350
$0

$167,979
$96,192

$155,150
$82,044

$142,350
$69,512

$142,350
$64,191

$142,350
$59,277

7.5
$1,400,000
-1,020,000
-$126,806
$253,194.00
$88,617.90
$164,576.10
$126,806

8.5
$1,400,000
-1,020,000
-$63,332
$316,668.00
$110,833.80
$205,834.20
$63,332

9.5
$1,400,000
-1,020,000
$0
$380,000.00
$133,000.00
$247,000.00
$0

10.5
$1,400,000
-1,020,000
$0
$380,000.00
$133,000.00
$247,000.00
$0

11.5
$1,400,000
-1,020,000
$0
$380,000.00
$133,000.00
$247,000.00
$0

291,382
166,857

269,166
142,336

247,000
120,615

247,000
111,382

247,000
102,855

8.5
$1,500,000
-$885,000
-$133,800
$481,200
$168,420
$312,780
133800

9.5
$1,500,000
-$885,000
$8
$615,008
$215,253
$399,755
0

10.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

11.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

New Plane
7.5
$1,500,000
-$885,000
-$267,900
$347,100
$121,485
$225,615
267900

$493,515
282,606 $

$446,580
236,152 $

$399,755
195,209 $

$399,750
180,262 $

$399,750
166,463

12.5
$1,400,000
-$1,181,000
$0
$219,000
$76,650.00
$142,350
$0
$142,350
$54,739

12.5
$1,400,000
-1,020,000
$0
$380,000.00
$133,000.00
$247,000.00
$0
247,000
94,981

12.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

$399,750
153,719 $

13.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0
$399,750
141,951 $

14.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0
$399,750
131,085 $

15.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0
$399,750
121,050 $

16.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0
$399,750
111,783

MACRS
7year

17.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

$399,750
103,225 $

1
14.29%

2
24.49%

3
17.49%

18.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

19.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

20.5
$1,500,000
-$885,000
$0
$615,000
$215,250
$399,750
0

$399,750
95,323 $

$399,750
88,026 $

$399,750
81,287

4
12.49%

5
8.93%

6
8.92%

7
8.93%

8
4.46%