19010008

FM - 1
Carleton Pump

Cost $ 145,000
Installation $ 5,000 DCF
Book Price $ 6,000
50,000
Sell price $ 20,000
Removal $ 1,000
-
Annual Savings $ 35,000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

First Year Cost $ 151,000 -50,000

Sale Profits $ 14,000
Annual Depreciation $ 10,000 -100,000

Cost of capital 15%

-150,000
Tax rate 40%
EAT $ 35,000 DCF
EBIT $ 49,000
EBITDA $ 59,000
Payback Period
50,000
Total Profits $ 207,994.84
NPV $ 37,550.17 -
IRR 24% 0 1 2 3 4
MIRR 17% -50,000

Discounted Payback -100,000

Period 3.07 years
Payback Period $ 2.32 -150,000

Discounted Paid back Payback

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 19010008
FM - 1
Carleton Pump

Year Free Cash Flows DCF Discounted Paid back Payback

0 $ -137,000 - 137,000 - 137,000 $ -137,000
1 $ 59,000 51,304 - 85,696 $ -78,000
2 $ 59,000 44,612 - 41,083 $ -19,000
3 $ 59,000 38,793 - 2,290 $ 40,000
4 $ 59,000 33,733 31,444
5 $ 59,000 29,333
6 $ 59,000 25,507
7 $ 59,000 22,180
8 $ 59,000 19,287
9 $ 59,000 16,771
10 $ 59,000 14,584
11 $ 59,000 12,682
12 $ 59,000 11,028
13 $ 59,000 9,589
14 $ 59,000 8,338
15 $ 59,000 7,251

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