Project Evaluation Model for

(Unless otherwise specified, all financials are in USD Mn) Units FY10A FY11P
0 1 2
Asset Name

Investment Assumptions
Initial Investment
Opportunity Cost
Tenor of Investment
Salvage Value of Asset
P&L Assumptions
Starting Revenue
Growth in Revenues
Variable Expenses/ Revenue
Starting Fixed Expenses
Growth in Fixed Expenses
Tax Rate
Working Capital Assumptions
Starting working capital
Working Capital as %age of Revenue
Valuation Assumptions
Discount rate to be taken as
Risk free rate
Beta
Expected return from market
Cost of debt
Target debt: capital ratio
Weighted Average Cost of Capital

Calculations
Cash Flow because of Capex in
Initial Investment
less: Opportunity Cost
add: Starting working capital
First Year Investment (net)
Salvage Value of Asset
P&L Statement for
Revenues
less: Variable Expenses
less: Fixed Expenses
EBITDA
less: depreciation
EBIT
less: tax
PAT
Cash Flow Statement because of Investment in
EBIT(1-t)
add: depreciation
less: increase in working capital
less: Capex
 add: salvage value of asset
Free Cash Flow for Project
Valuation
Discount Factor
DV
NPV

FY12P FY13P FY14P FY15P FY16P FY17P FY18P FY19P
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