Scenario Summary

Current Values: nterest interest 2 down payment 1

Changing Cells:
$C$49 9% 9% 9% 9%
$C$47 20% 20% 20% 20%
Result Cells:
$I$53 332368 332368 336285 332368
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
down payment 2

9%
25%

311851
 QUESTION # 1

WACC
ORDINARY SHARE CAPITAL
P.stock
loan
Total

Amount
ORDINARY SHARE CAPITAL
P.stock
loan 1500000

Tax rate 30%

Cost of Equity 19.5%

Dividends
Year 0
Year 1 3
Year 2 3.5
Year 3 3.8
Year 4 4.2
Year 5 5
Year 6 5.5

P. STOCK 6%
Dividends
Year 0
Year 1 9
Year 2 9
Year 3 9
Year 4 9
Year 5 9
Year 6 9

QUESTIO
 QUESTIO
COST 20,000,000
REGISTRATION 0.30%
ROAD TAXES 50000
ADJUSTABLE WITHOLDING INCOME TAX 1%
DOWN PAYMENT % AGE OF COST 20%
INSURANCE AS % AGE OF COST FOR 5 YEARS 1%
INTEREST RATE 9%
LEASE PERIOD YEARS 5%
INSTALLMENT PAYMENT MONTHLY

Total cost of the vehicle

invoice price 20,000,000
Registration 60000
Road taxes 50000
ADJUSTABLE WITHOLDING INCOME TAX 0
Insuarance 200000
Financing cost 3742068
Total 24,052,068

lease amount
cost of the vehicle 20,000,000
less: down payment -4000000
Amount leased 16,000,000
Insurance 200000
Total lease by bank 16,200,000
UESTION # 1
Cost adjusted
Amount Weight for tax wtd. Cost
1750000 40% 19.5% 7.76%
1150000 26% 6% 1.56%
1500000 34% 5.6% 1.91%
4400000 100% 11.23%

No. of shares Par value Market value interest rate Redemption value
50000 10 35
10000 100 115 9% 100
8%

Market value intrinsic value Total CF

-35 -35
3 this model is variable growth as dividen
3.5
3.8 INTRINSIC VALUE=D1/(C.E-GR)
4.2
57.80 62.80
NPV Rs0.00

Market value REDEMPTION VALUE Total CF

-115 -115
9
9
9
9
9
100 109
IRR 6%

QUESTION # 2
QUESTION # 2

refundable so its not a cost

20% 25%

8.50% 9%
Monthly installment 332368

No. of installment op. balnace principal interest

1 16,200,000 217618 114750
2 15,982,382 219159 113209
3 15,763,223 220712 111656
4 15,542,511 222275 110093
5 15,320,236 223849 108518
6 15,096,387 225435 106933
7 14,870,952 227032 105336
8 14,643,920 228640 103728
9 14,415,280 230260 102108
10 14,185,020 231891 100477
11 13,953,130 233533 98835
12 13,719,596 235187 97180
13 13,484,409 236853 95515
14 13,247,556 238531 93837
15 13,009,025 240221 92147
16 12,768,804 241922 90446
17 12,526,882 243636 88732
18 12,283,247 245361 87006
19 12,037,885 247099 85268
20 11,790,786 248850 83518
21 11,541,936 250612 81755
22 11,291,323 252388 79980
23 11,038,936 254175 78192
24 10,784,761 255976 76392
25 10,528,785 257789 74579
26 10,270,996 259615 72753
27 10,011,381 261454 70914
28 9,749,927 263306 69062
29 9,486,621 265171 67197
30 9,221,450 267049 65319
31 8,954,401 268941 63427
32 8,685,460 270846 61522
33 8,414,615 272764 59604
34 8,141,850 274696 57671
35 7,867,154 276642 55726
36 7,590,512 278602 53766
37 7,311,910 280575 51793
38 7,031,335 282563 49805
39 6,748,772 284564 47804
40 6,464,208 286580 45788
41 6,177,629 288610 43758
42 5,889,019 290654 41714
43 5,598,365 292713 39655
44 5,305,653 294786 37582
45 5,010,866 296874 35494
46 4,713,992 298977 33391
47 4,415,015 301095 31273
48 4,113,920 303228 29140
49 3,810,693 305375 26992
50 3,505,318 307538 24829
51 3,197,779 309717 22651
52 2,888,062 311911 20457
53 2,576,151 314120 18248
54 2,262,031 316345 16023
55 1,945,686 318586 13782
56 1,627,100 320843 11525
57 1,306,258 323115 9253
58 983,143 325404 6964
59 657,739 327709 4659
60 330,030 330030 2338
 COST OF CAPITAL

Growth
rate
beyond
year 5
10%

ariable growth as dividends are given for the next years but at some rate the dividend will be at aconstant rate in which we to find the intr

UE=D1/(C.E-GR)

C.E > GR
install clos. Bal
332368 15,982,382
332368 15,763,223
332368 15,542,511
332368 15,320,236
332368 15,096,387
332368 14,870,952
332368 14,643,920
332368 14,415,280
332368 14,185,020
332368 13,953,130
332368 13,719,596
332368 13,484,409
332368 13,247,556
332368 13,009,025
332368 12,768,804
332368 12,526,882
332368 12,283,247
332368 12,037,885
332368 11,790,786
332368 11,541,936
332368 11,291,323
332368 11,038,936
332368 10,784,761
332368 10,528,785
332368 10,270,996
332368 10,011,381
332368 9,749,927
332368 9,486,621
332368 9,221,450
332368 8,954,401
332368 8,685,460
332368 8,414,615
332368 8,141,850
332368 7,867,154
332368 7,590,512
332368 7,311,910
332368 7,031,335
332368 6,748,772
332368 6,464,208
332368 6,177,629
332368 5,889,019
332368 5,598,365
332368 5,305,653
332368 5,010,866
332368 4,713,992
332368 4,415,015
332368 4,113,920
332368 3,810,693
332368 3,505,318
332368 3,197,779
332368 2,888,062
332368 2,576,151
332368 2,262,031
332368 1,945,686
332368 1,627,100
332368 1,306,258
332368 983,143
332368 657,739
332368 330,030
332368 0
in which we to find the intrinsic value and generate a cash flow stream
Problem 1:

WACC No. of shares Mkt price

Equity 5000000 23.5
Preferred 1000000 120

COE

Do 0.75
D1 0.799
Ke 9.90%

COP
NO OF YEARS DIVIDENDS REDEMPTION/MKT VALUE
YEAR 0 -120
YEAR 1 5.5
YEAR 2 5.5
YEAR 3 5.5
YEAR 4 7.5
YEAR 5 7.5
YEAR 6 7.5 108
IRR

PART 2:
POST TAX OF WACC 6.9% SAME AS PRE TAX

PART 3:
DISCOUNT FACTOR FOR YEAR 6 0.79
PV OF REDEMPTION VALUE 86.122096693423

PART 4:
WACC No. of shares Mkt price
Equity 5000000 23.5
Preferred 812294.46251466 120

quiz 2 :
investment 500000
Annual interest rate 1%
will increase by 10 % each year 10%

n years pmt
1 1 500000
2 2 500000
3 3 500000
4 4 500000
5 5 500000
6 6 500000
7 7 500000
8 8 500000
9 9 500000
10 10 500000

n years pmt
1 1 1000000
2 2 1000000
3 3 1000000
4 4 1000000
5 5 1000000
6 6 1000000
7 7 1000000
8 8 1000000
9 9 1000000
10 10 1000000
AMOUNT weight ccost of adj weight
117500000 9.90% 4.9%
120000000 3.9% 2.0%
237500000 6.9%

CASH FLOW
-120
5.5
5.5
5.5
7.5
7.5
115.875
3.9%

AMOUNT weight ccost of adj weight

117500000 9.90% 4.9%
97475335.5017587 3.9% 1.6%
6.5%
interest closing balance
0.011 494559.84174085
0.011 489178.87412547
0.011 483856.45314092
0.011 478591.94178133
0.011 473384.70997164
0.011 468234.13449222
0.011 463139.59890428
0.011 458100.49347604
0.011 453116.21510983
0.011 448186.16726986

discount factor
0.93 925925.92592593
0.86 857338.82030178
0.79 793832.24102017
0.74 735029.85279645
0.68 680583.19703375
0.63 630169.62688311
0.58 583490.39526213
0.54 540268.88450198
0.50 500248.96713146
0.46 463193.48808468
 QUESTION # 3

ORDINARY SHARE CAPITAL 1,000,000

MARKET PRICE 35
Do 2
R.E 22500000
Reserves 2000000
g 4.50%

Part A: 35000000
Market value of the company

Part B:
no growth
Ke 5.7% Do/P

Part C:
ke 10.471428571428600% D1/P+g
D1 2.09 D1=Do(1+g)

Part D:
COE 10.5%
n years Dividends market value
0 0 -35
1 1 2.3
2 2 2.4
3 3 2.35
4 4 2.4
5 5 2.45
6 6 2.56

Part E:
n years Dividends INTRINSIC VALUE
0 0
1 1 2.3
2 2 2.4
3 3 2.35
4 4 2.4
5 5 2.45 42.94
6 6 2.56

Question # 4
WACC Amount weight cost adj for tax
EQUITY 1450000000 63% 7%
PREFERRED 117600000 5% 11%
LOAN 750,000,000 32% 5%
DEBENTURE 250000 0% 4.6%
TOTAL 2317850000 100%
AMOUNT NO. OF SHARES PARVALUE
EQUITY 50,000,000 10
P.STOCK 1,200,000 100
LOAN 750,000,000
DEBENTURES 250,000 1000
Tax rate 30%

COE 7%
YEARS Dividends market value Intrinsic value
YEAR 0 -29
YEAR 1 1.2
YEAR 2 1.2
YEAR 3 1.3
YEAR 4 1.3
YEAR 5 1.4 32.5606525231306
YEAR 6 1.4
NPV

COP 11%
YEARS Dividends market value REDEMPTION value
YEAR 0 -98
YEAR 1 9.0
YEAR 2 9.0
YEAR 3 9.0
YEAR 4 9.0
YEAR 5 9.0
YEAR 6 9.0
YEAR 7 9.0 115
IRR

QESTION # 5

MV 15
Do 2.3
grow for next 3 years 8%
2 years 5%
3 years 6%
COE 21%
YEARS DIVIDENDS MARKET VALUE INTRNSIC VALUE
YEAR 0 -15
YEAR 1 2.30
YEAR 2 2.48
YEAR 3 2.68
YEAR 4 2.90
YEAR 5 3.04
YEAR 6 3.19
YEAR 7 3.39
YEAR 8 3.59 20.8046324135448
YEAR 9 3.70 NPV

COE 20%
YEARS DIVIDENDS MARKET VALUE INTRNSIC VALUE
YEAR 0 -15
YEAR 1 2.3
YEAR 2 2.48
YEAR 3 2.68
YEAR 4 2.90
YEAR 5 3.04
YEAR 6 3.19
YEAR 7 3.39
YEAR 8 3.6 18.12
YEAR 9 3.59 NPV

GROWTH RATE BEYOND 8 YEARS 0

intrinsic value Total cash flow
-35
2.3
2.4
2.35
2.4
42.94 45.39
NPV Rs0.00

Discount factor Pv of dividends Pv of intrinsic value

0.91 2.08
0.82 1.97
0.74 1.74
0.67 1.61
0.61 1.49 26.1059673526924
0.55 1.41
TOTAL 10.30 26.1059673526924
weighted cost
4.55%
0.56%
1.70%
0.00%

MARKET VALUE REMPTION VALUE TERM GROWTH RATE

29
98 115 7 3%
0 1100 5

Total CF
-29
1.2
1.236
1.27308
1.3112724
33.9112630951306
1.39112888916
Rs0.00

Total CF
-98
9
9
9
9
9
9
124
11%
CASH FLOW
-15.00
2.30
2.48
2.68
2.90
3.04
3.19
3.39
24.39
0.0

CASH FLOW
-15
2.3
2.484
2.68272
2.8973376
3.04220448
3.194314704
3.38597358624
21.7104290998849
0
 AMOUNT NO. OF SHARES PARVALUE
COE 50,000,000 10
P.S 1,200,000 100
LOAN 750,000,000
DEBENTURES 250,000 1000

D0 1.2
G 3%
TAX RATE 30%

WACC Amount weight cost adj for tax

COE 1450000000 62.6% 7%
P.S 117600000 5.1% 12%
LOAN 750,000,000 32.4% 0.0455
DEBENTURES 250,000 0.0% 0.0525
TOTAL 2317850000 100.0%

COE 7%
 YEARS DIV M.V
0 -29
1 1.2
2 1.2
3 1.3
4 1.3
INTEREST RATE 5 1.4
6 1.4
9%
7.50%
6.50%

P.S 12%
YEAR DIV M.V
0 -98
1 9
2 9
3 9
4 9
5 9
6 9
7 9
MARKET VALUE REMPTION VALUE TERM GROWTH RATE
29
98 115 7

1100 5

weighted cost
4.5%
0.6%
1.5%
0.0%
INTRINSIC VALUE TCF
-29
1.2
1.236
1.27308
1.3112724
32.5606228710256 33.9112334430256
1.39112888916
NPV Rs0.00

REDEMPTION TCF
-98
9
9
9
9
9
115 124
9
IRR 12%
INTEREST RATE

9%
6.50%
7.50%
PROBLEM # 1
Do 2
div expected to grow for 3 years 15%
next 3 years 10%
expected to grow at a 5 percent rate forever 5%
rate of return (COE) 18%
value of the stock ?

COE 18%
YEARS DIVIDENDS INTRINSIC
0 2.00
1 2.30
2 2.65
3 3.04
4 3.35
5 3.68
6 4.05 32.70
7 4.25

PROBLEM # 2
PART (a)
BASE BALL BAT 100

ANNUAL DIVIDEND 8
DIVIDEN YIELD ?

DIVIDEN YIELD 8%

Part (b)

intrinsic value at the end of year 5 110

COE
YEARS DIVIDENDS Market Value
0 -100
1 8
2 6.2
3 4.8
4 3.5
5 5.4

PROBLEM # 3
D1 1.5
GROWTH 9%
RATE OF RETURN 13%
MP 37.5

PROBLEM # 4

D1 1.4
CLOSING PRICE 21
RATE OF RETURN 12%
GROWTH

5.3%

PROBLEM # 5
DI 2
GROWTH 10%
RATE 16%
INTRINSIC VALUE 33.3
CASH FLOW DISCOUNT FACTOR PV
2.00 1.00 2
2.30 0.85 1.95
2.65 0.72 1.90
3.04 0.61 1.85
3.35 0.52 1.73
3.68 0.44 1.61
36.75 0.37 13.61
PV 24.65

INTRINSIC VALUE cashflow

-100
8
6.2
4.8
3.5
110 115.4
IRR 7%
11% 10%
16% 14%
30 37.5

9% 11%

28.6 40.0
 chapter 15

kp = Dp/Po

kp 10%
Par value 50
mkt p 49
D 5
the cost of P.S WILL BE

10%

problem 2
bonds 3000000 10000000
stock 7000000
bonds have a yield to maturity 14%
stock expected to pay this year 500,000
growth rate 11%
tax rate 40%
cost of capital ?

ki kd(1-t) 8.4%
ke D1/P+g 18.14%

ko ki(b/(b+s))+kd(s/b+s)) 15.2200%

problem 3
D1 3
growth rate 0.20
future dvidend growth 0.15
Po 300
exp div at the end of 2012 3.45

part a
ke 21.00%
ke 16

problem 4
term 6
growth rate for 3 years 12%
growth rate for 6 years 6%
Do 2
mkt price 25

COE 13%
YEARS DIVIDENDS MARKET VALUE
0 -25
1 2.24
2 2.51
3 2.81
4 2.98
5 3.16
6 3.35

PROBLEM 5
WAAC Weight
DEBENTURES 6,000,000 37.5%
PREFFERED STOCK 2,000,000 12.5%
COMMOM STOCK 8,000,000 50.0%
16,000,000 100%
TAX 40%
COE 17%
COD 13%
COP 12%

PROBLEM # 6
BETA 1.28
MARKET RATE 0.18
RF 0.12
DEBT 0.4
EQUITY 0.6

PART A:
CAPM APPROACH Ri=Rf+(Rm-Rf)*beta 0.1968
COE 0.20
COD 0.08 GIVEN
PART B:
WEIGHTED AVG REQ RATE OF RETURN ?
0.15 WD*COD+WE*COE

PROBLEM # 8
MARKET RETURN 0.15
RF 0.10
BETA 1.10

PROBABILITY 0.2 0.3

BETA 1 1.1

PART A:
REQUIRED RATE OF RETUEN Ri=Rf+(Rm-Rf)*beta 0.155
PART B:
MAXIMUM Ri=Rf+(Rm-Rf)*beta 0.17
MINIMUM Ri=Rf+(Rm-Rf)*beta 0.15

PART C:
EXPECTED VALUE REQ RATE OF RETURN Ri=Rf+(Rm-Rf)*beta 0.16
0.165

PROBLEM # 9
COE 0.15
YEAR EXPECTED CF DISCOUNT FACTOR
0 -400,000 1.00
1 50,000 0.87
2 50,000 0.76
3 150,000 0.66
4 350,000 0.57
NPV
IRR
5

4.9
INTRINSIC VALUE TCF
-25
2.24
2.5088
2.809856
2.97844736
25.70 28.8580956405531
3.346583453696
NPV Rs0.00

cost adj for tax Weighted cost

17% 6.4%
13% 1.6%
12% 6.0%

0.2 0.2 0.1

1.2 1.3 1.4
PV OF CF
-400000
43478.2608695652
37807.1833648393
98627.4348647982
200113.635957562
-Rs134,209.04
-2%
 n 1 2 3 4 5
5% years 1 2 3 4 5
5000 3000 2000 6000 -3000
Pv factor 0.952381 0.907029 0.863838 0.822702 0.783526
Pv 4761.905 2721.088 1727.675 4936.215 -2350.578

PAR VALUE 100

DIVIDEND RATE 4.50%
DIV PAYMENT HALF Yearly
MP 95
TERM YEARS 5
RED. PRICE 110

COP 3.92%

MP/
REDEPM. DISCOUTF
DIV PRICE CF ACTOR PVS
YEAR 0 -95 -95 1 -95
YEAR 0.5 4.5 4.5 0.980955 4.414299
YEAR 1 4.5 4.5 0.962273 4.33023
YEAR 1.5 4.5 4.5 0.943947 4.247763
YEAR 2 4.5 4.5 0.92597 4.166865
YEAR 2.5 4.5 4.5 0.908335 4.087509
YEAR 3 4.5 4.5 0.891036 4.009664
YEAR 3.5 4.5 4.5 0.874067 3.933301
YEAR 4 4.5 4.5 0.857421 3.858393
YEAR 4.5 4.5 4.5 0.841091 3.784911
YEAR 5 4.5 110 114.5 0.825073 94.47086
IRR 5.94% NPV Rs0.00

THAT’S WHY WE CALCULATE NPV FOR HALF

IRR WILL BE ONLY CALCULATED IF THE DIV ARE YEARLY

 6
6
2500
0.746215
1865.538

FOR HALF YEARLY PAYMENTS WE HAVE TO FIND DISCOUNT FACTOR

HY WE CALCULATE NPV FOR HALF YEARLY PAYMENTS

ARE YEARLY
 outflow
sc 1 existing asset sent W/H -500,000
sc 2 existing asset Sold at book value -500,000
sc 3 existing asset Sold for 30,000 -500,000
sc 4 existing asset Sold for 70,000 -500,000

van horne book chapter 12 :

ini cost 60,000

dep rate
depreciation
acc dep
NBV

1) CASHFLOWS
2) NO IRRELEVANT COST
3) INCREMENTAL COSTS AND BENEFITS

COST OF OLD MACHINE 300,000

LIFE YEARS 11 YEAR
AGE YEAR (USED) 3

SALVAGE VALUE 70,000

BOOK VALUE 86,400
LOSS ON DISPOSAL -16,400
TAX RATE 0.40

COST OF NEW MACHINE 480,000

LIFE YEARS 8
SALVAGE VALUE 40,000
ANNUAL SAVINGS 100,000
van horne chap 12: Example ASSET EXPANSION

initial cost 90,000

useful life 4
shipping and insallation charges 10,000
expected final salvage value 16500

operating revenue
years revenue
1 35,167
2 36,250
3 55,725
4 32,258

tax rate 40%

example of asset replacement:

purchase price of new mold is 18500

additional installation cost 1500
total cost 20,000
olc mach useful life 4
sold for depreciated tax book value 2000
salvage value 0
dep for new mold machine
SAVINGS 7100
year 1 year 2 year 3
33.33% 44.45% 14.81%

original dep of old machine 9000

self correction problem # 2

data:
operating revenues 150,000
cost of defects 5000
new equpment costing 500,000
use full life 4
macrs 3 years
year 1 year 2 year 3
33.33% 44.45% 14.81%

salvage value of new equipment 50,000

maitnance costs 8000

tax rate 40%

PROBLEMS 1:
DNA TESTING EQUIPMENT 60,000
OPERATING REVENUE 20,000
USEFUL LIFE 5
3 YEARS MACRS CLASS
year 1 year 2 year 3
33.33% 44.45% 14.81%

TAX RATE 38%

REQ RATE OF RETURN 15%

Data: (old machine)

two old machines salvage value 70,000
cost of old machine 300,000
book value 86400
useful life 8
macrs 5
LOSS ON DISPOSAL -16,400
new machine :
cost of new machine 480,000
useful life 8
salvage value 40,000
macrs 5 year property class
savings 100,000
tax rate 40%

INITIAL CF: YEAR 0 YEAR 1

INITIAL COST OF NEW MACHINE 480,000
PROCESS OF THE DISPOSAL OF OLD MACHINE 70,000
TAX GAIN ON DISPOSAL -6560
NET INITIAL CF 543,440

OPERATING CF:
SAVING 100,000
ADD DEP
DEP OF OLD MACHINE 34500
DEP OF NEW MACHINE 96000
INCREMENTAL DEP -61500

INCREMENTAL PROFIT BEFORE TAX 38,500

TAX -15400
PROFIT AFTER TAX 23,100
ADD BACK DEP 61500
NET OP CF 84,600

TERMINAL CF
SALVAGE VALUE NEW
TAX
NET TERMIANL CF

CASH FLOW FROM PROJECT 543,440 84,600

DEP OLD MACHINE

INITIAL COST 300,000
DEP RATE 20.0%
DEPREACIATION 60000
ACC DEP 60000
NBV 240,000

DEP NEW MACHINE YEAR 0 YEAR 1

INITIAL COST 480,000
DEP RATE 20.0%
DEPREACIATION 96000
ACC DEP 96000
NBV 384,000
 Existing New
cost 300,000 500,000
acc dep 250,000
carrying value 50,000

inflow net tax amount

0 -500,000 0
50,000 -450,000 0
30,000 -470,000 6000
70,000 -430,000 -6000

FOR RELEVANT CASHFLOWS

0 1

33.33%
19998
19998
40,002

YEAR 0 YEAR 1

INITIAL CF

COST OF NEW MACHINERY -480,000

PROCEEDS FROM DISPOSAL OF OLD MACHINE 70,000
Tax gain on loss on disposal 6560
NET INITIAL CASH FLOW -403,440

OPERATING CF:
SAVINGS 100,000
OLD DEP 34500
NEW DEP 96000
INCREMENTAL DEP -61500

INC. PROFIT BEFORE TAX 38,500

TAX GAIN / LOSS -15400
PROFIT AFTER TAX 23,100
ADD BACK INCREMENTAL DEP 61,500
NET OPERATING CASH FLOW 84,600

TERMINAL CF
SALVAGE VALUE OF NEW MACHINE
TAX GAIN / LOSS
NET TERMINAL CF
CASH FLOW FROM PROJECT -403,440 84,600
YEAR 0 YEAR 1
DEP SCH OLD:
INITIAL COST 300,000
DEP RATE 20.0%
DEPRECIATION 60000
ACC DEP 60000
NBV 240,000

YEAR 0 YEAR 1
DEP SCH FOR NEW MACHINE
INITIAL COST 480,000
DEP RATE 20.0%
DEPRECIATION 96000
ACC DEP 96000
NBV 204,000

YEAR 0 YEAR 1
INITIAL CF:
INITIAL COST 90,000
SHIPPING AND INSTALLATION CHARGES 10,000
INITIAL CF: 100,000

YEAR 0 YEAR 1
OPERATING / INTERIM CF
OPERATING REVENUE 35,167
ADD DEP -33330
PROFIT BEFORE TAX 1,837
TAX GAIN / LOSS - 735
PROFIT AFTER TAX 1,102
ADD BACK DEP 33330
NET OPERATING CF 34,432

TERMINAL CF
SALVAGE VALUE
TAX GAIN / LOSS

PROJECTED CASH FLOW 100,000 34,432

DEP SCHEDULE:
INITIALCOST 100,000
DEP RATE 33.33%
DEPRECIATION 33330
ACC DEP 33330
NBV 66,670

YEAR 0
INITIAL CF:
INITIAL COST 20,000
NET DISPOSAL OF AN OLD ASSET -2000
TAX ON DISPOSAL OF AN OLD MACH 0
NET INITIAL CF 18,000

OPERATING CF:
SAVINGS
OLD DEP
year 4 NEW DEP
7.41% INCREMENTAL CHANGE
INCREMENTAL PROFIT BEFORE TAX
TAX 40%
PROFIR AFTER TAX
ADD BACK DEP
NET OPERATING CF

TERMINAL CF:
SALVAGE VALUE
TAX
NET TERMINAL CF

PROJECTED CASH FLOW 18,000

DEP SCH OF AN OLD MACH

DEP BASIS
DEP RATE
DEPRECIATION
ACC DEP
 NBV

DEP SCH OF AN NEW MACHINE

INITIAL COST
DEP RATE
DEPRECATION
ACC DEP
NBV

year 0
INITIAL CF:
INITIAL COST 500,000
MAINTENANCE COSTS -8000
COST OF DEFECTS -5000
NET INITIAL CF 487,000

OPERATING CF:
year 4 OPERATING REVENUE
7.41% ADD DEP
PROFIT BEFOR TAX
TAX
PROFIR AFTER TAX
ADD BACK DEP
NET OPERATING CF

TERMIANL CF:
SALVAGE VALUE
TAX
NET TERMINAL CF

PROJECTED CF 487,000

DEP SCHEDULE:
INITIAL COST
DEP RATE
DEPRECIATION
ACC DEP
NBV
 YEAR 0
INITIAL CF:
INITIAL COST 60,000
NET INITIAL COST 60,000

OPERATING CF
OPERATING REVENUE
ADD DEP
year 4 PROFIT BEFORE TAX
7.41% TAX
FROFIT AFTER TAX
ADD BACK DEP
NET OPERATING CF

TERMIANL CF:
SALVAGE VALUE
TAX
NET TERMINAL CF

PROJECTED CF 60,000

DEP SCHEDULE :
INITIAL COST
DEP RATE
DEPRECIATION
ACC DEP
YEAR 2 YEAR 3 YEAR 4

100,000 100,000 100,000

34500 17400 0
153600 92160 55200
-119100 -74760 -55200

-19,100 25,240 44,800

7640 -10096 -17920
-11,460 15,144 26,880
119100 74760 55200
107,640 89,904 82,080

107,640 89,904 82,080

32.0% 19.2% 11.5%

96000 57600 34500
156000 213600 248100
144,000 86,400 51,900

YEAR 2 YEAR 3 YEAR 4

32.0% 19.2% 11.5%

153600 92160 55200
249600 341760 396960
-249,600 -341,760 -396,960
net
-500,000
-450,000 we are just concerned with the cash invilved
-464,000 outflows are same
-436,000 inflows are different

2 3 4 5

44.45% 14.81% 7.41%

26670 8886 4446
46668 55554 60000 60000
13,332 4,446 0 0

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6

100,000 100,000 100,000 100,000 100,000

34500 17400 0 0 0
153600 92160 55200 55200 27840
-119100 -74760 -55200 -55200 -27840

-19,100 25,240 44,800 44,800 72,160

7640 -10096 -17920 -17920 -28864
-11,460 15,144 26,880 26,880 43,296
119,100 74,760 55,200 55,200 27,840
 107,640 89,904 82,080 82,080 71,136

107,640 89,904 82,080 82,080 71,136

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6

32.0% 19.2% 11.5% 11.5% 5.8%

96000 57600 34500 34500 17400
156000 213600 248100 282600 300000
144,000 86,400 51,900 17,400 0

YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6

32.0% 19.2% 11.5% 11.5% 5.8%

153600 92160 55200 55200 27840
249600 341760 396960 452160 480000
50,400 -41,760 -96,960 -152,160 -180,000

YEAR 2 YEAR 3 YEAR 4

YEAR 2 YEAR 3 YEAR 4

36,250 55,725 32,258

-44450 -14810 -7410
- 8,200 40,915 24,848
3,280 - 16,366 - 9,939
- 4,920 24,549 14,909
44450 14810 7410
39,530 39,359 22,319
 16500
6600
9900

39,530 39,359 32,219

100,000 100,000 100,000

44.45% 14.81% 7.41%
44450 14810 7410
77780 92590 100000
22,220 7,410 0

YEAR 1 YEAR 2 YEAR 3 YEAR 4

7100 7100 7100 7100

2999.7 4000.5 1332.9 666.9
6666 8890 2962 1482
-3666.3 -4889.5 -1629.1 -815.1
3433.7 2210.5 5470.9 6284.9
-1373.48 -884.2 -2188.36 -2513.96
2060.2 1326.3 3282.5 3770.9
3666.3 4889.5 1629.1 815.1
5726.5 6215.8 4911.6 4586.0

0
0
0

5726.5 6215.8 4911.6 4586.0

9000 9000 9000 9000

33.33% 44.45% 14.81% 7.41%
2999.7 4000.5 1332.9 666.9
2999.7 7000.2 8333.1 9000
 6000.3 1999.8 666.9 0

20,000 20,000 20,000 20,000

33.33% 44.45% 14.81% 7.41%
6666 8890 2962 1482
6666 15556 18518 20000
6666 22222 40740 60740

year 1 year 2 year 3 year 4

150,000 150,000 150,000 150,000

-166650 -216471.5 -72124.7 -36086.7
-16,650 -66,472 77,875 113,913
-6660 -26588.6 31150.12 45565.32
-23,310 -93,060 109,025 159,479
166,650 216,472 72,125 36,087
143,340 123,411 181,150 195,565

50,000
20,000
30,000

143,340 123,411 181,150 225,565

500,000 487,000 487,000 487,000

33.33% 44.45% 14.81% 7.41%
166650 216471.5 72124.7 36086.7
166650 383121.5 455246.2 491332.9
333,350 103,879 31,754 -4,333
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

20,000 20,000 20,000 20,000 20,000

-19998 -26670 -8886 -4446 0
2 -6,670 11,114 15,554 20,000
0.75999999999862 -2534.6 4223.32 5910.52 7600
3 -9,205 15,337 21,465 27,600
19998 26670 8886 4446 0
20,001 17,465 24,223 25,911 27,600

0
0
0

20,001 17,465 24,223 25,911 27,600

60,000 60,000 60,000 60,000 60,000

33.33% 44.45% 14.81% 7.41% 0
19998 26670 8886 4446 0
19998 46668 55554 60000 60000
YEAR 5 YEAR 6 YEAR 7 YEAR 8

100,000 100,000 100,000 100,000

0 0 0 0
55200 27840 0 0
-55200 -27840 0 0

44,800 72,160 100,000 100,000

-17920 -28864 -40000 -40000
26,880 43,296 60,000 60,000
55200 27840 0 0
82,080 71,136 60,000 60,000

40,000
16000
24,000

82,080 71,136 60,000 84,000

11.5% 5.8%
34500 17400
282600 300000
17,400 0

YEAR 5 YEAR 6 YEAR 7 YEAR 8

11.5% 5.8%
55200 27840
452160 480000
-452,160 -480,000
YEAR 7 YEAR 8

100,000 100,000
0 0
0 0
0 0

100,000 100,000
-40000 -40000
60,000 60,000
0 0
 60,000 60,000

40,000
16,000
24,000
60,000 84,000
YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11

YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11

excercise # 2
product 1 product 2
price/ unit 125 345
unit volume/ year 8400 4200
cost of goods sold/ unit 62 188

gross sales 1050000 1449000

less: commissions 31500 43470
net sales 1018500 1405530
LESS: CGS 520800 789600
GROSS PROFIT 497700 615930
TOTAL GROSS PROFIT 1113630 615930
LESS:
OTHER OPERATING EXP 245000
GENERAL & ADMINISTRATIVE EXP 387000
INTEREST EXPENSES 112000
INCOME BEFORE TAXES 369630
LESS INCOME TAXES 170029.8
NET INCOME 199600.2

excercise # 3 break even calculations

planned sales in units 20,000

selling price 15
variable cost per unit 9
total fixed costs 60,000

PART B: 2
INCREASE IN VC 9.9
SALES 300000
V.C 198000
F.C 60,000
NET PROFIT 42,000

PART 1 AND PART 4 WILL HAVE THE LOWEST PROFITS

exercise # 5

product WADGET A WEDGET B

PRICE / UNIT 125 345
UNIT VOLUME / YEAR 8400 4200
COGS / UNIT 62 188
COMMISSIONS 0.03

GROSS SALES 1050000 1449000

LESS: COMMISSIONS 31500 43470
NET SALES 1018500 1405530
LESS : COGS 520800 789600
GROSS PROFIT 497700 615930

EXERCISE # 11
MONTHLY F.C 5000
INSTALL DISHES / MONTH 100
V.C / DISH 300
PROGRAMMING AND SATELLITE 5
BILLING AND CUSTOMER 1
CHARGES CUSTOMER 50
SUBSCRIPTION FEES 20

YEARS
MONTHS MONTH 1 MONTH 2
INSTALL DISHES / MONTH 100 100
SUBSCRIBED MEMBERS 100 200
CHARGES CUSTOMER 5000 5000
SUBSCRIPTION FEES 2000 4000
REVENUE 7000 9000
COST LESS:
V.C 30000 30000
F.C 5000 5000
PROGRAMMING AND SATELLITE 500 500
BILLING AND CUSTOMER 100 100
LESS : COGS 35600 35600
GROSS PROFIT -28600 -26600
CUMMULATIVE PROFIT -28600 -55200
BREAK EVEN PER MONTH 1 1
30 BREAK EVEN MONTHS

PRACTICE QUESTIONS:

YEAR 1 (MONTHLY SALES)

RETAIL 15500
WHOLE SALE 22000
VOLUME ( RETAIL)
FIRST HALF / MONTH 1.50%
SECOND HALF / MONTH 2%

VOLUME (WHOLE SALE)

STEADILY / MONTH 2%

PRICES YEAR 1:
(RETAIL) 40
WHOLE SALE 30

INCREASE IN PRICE
RETAIL 3%

SALE LEVEL PRICE

WHOLESALE 2

COSTS:
INPUT COSTS YEAR 1 12
PACAKAGING YEAR 1 3
FC 215000
INVENTORY HOLDING COSTS 3

INFLATION RATE
year 2 2%

part 1: year 1 year 2

sales retail 7440000 8530750
whole sale 7920000 9029018.80497527
total sales 15360000 17559768
less cost :
input costs 5400000 6218217.71048336
PAKAGING COSTS 1350000 1526363.31825573
inventory holding costs 1350000 1526363.31825573
FC 2580000 2631600
TOTAL COST 10680000 11902544.3469948

gross profit 4680000 5657224.06319305

gross margin 0.3046875 0.322169628382504
 scenario 1:
price/ unit 150 345
unit volume/ year 6500 4200
cost of goods sold/ unit 62 188

975000 1449000
29250 43470
945750 1405530
403000 789600
542750 615930
1158680

245000
387000
112000
414680
190752.8
223927.2

PART B: 1
Part A:
SALES 300000 SALES
V.C 180000 V.C
F.C 60,000 F.C
NET PROFIT 60,000 NET PROFIT

PART B: 3 PART B: 4
INCREASE IN TFC 66000 DECREASE IN UNIT SALES
SALES 300000 SALES
V.C 180000 V.C
F.C 66000 F.C
NET PROFIT 54000 NET PROFIT

WIDGET C WODGET D WUDGET E

99 380 235
10950 4000 3850
52 225 109
 1084050 1520000 904750
32521.5 45600 27142.5
1051528.5 1474400 877607.5
569400 900000 419650
482128.5 574400 457957.5

YEAR 1
MONTH 3 MONTH 4 MONTH 5 MONTH 6
100 100 100 100
300 400 500 600
5000 5000 5000 5000
6000 8000 10000 12000
11000 13000 15000 17000

30000 30000 30000 30000

5000 5000 5000 5000
500 500 500 500
100 100 100 100
35600 35600 35600 35600
-24600 -22600 -20600 -18600
-79800 -102400 -123000 -141600
1 1 1 1
N MONTHS

year
months month 1 month 2 month 3
retail 15500 15500 15500
wholesale 22000 22000 22000
total units sold 37500 37500 37500

Sales
retail 620000 620000 620000
whole sale 660000 660000 660000
total sales 1280000 1280000 1280000

less costs:
input cost 450000 450000 450000
packaging costs 112500 112500 112500
inventory holding costs 112500 112500 112500
FC 215000 215000 215000
TOTAL COST 890000 890000 890000

GROSS PROFIT 390000 390000 390000

GROSS MARGIN 30% 30% 30%
 scenario 2:
price/ unit 125 345
unit volume/ year 8400 4200
cost of goods sold/ unit 62 188

gross sales 1050000 1449000

less: commissions 31500 43470
net sales 1018500 1405530
LESS: CGS 520800 789600
GROSS PROFIT 497700 615930
TOTAL GROSS PROFIT 1113630 615930
LESS:
OTHER OPERATING EXP 245000
GENERAL & ADMINISTRATIVE EXP 210000
INTEREST EXPENSES 112000
INCOME BEFORE TAXES 546630
LESS INCOME TAXES 251449.8
NET INCOME 295180.2

DECREASE IN S.P
S.P 13.5
270000
180000
60,000
30,000

18000
270000
180000
60,000
30,000
YEAR 1
MONTH 7 MONTH 8 MONTH 9 MONTH 10
100 100 100 100
700 800 900 1000
5000 5000 5000 5000
14000 16000 18000 20000
19000 21000 23000 25000

30000 30000 30000 30000

5000 5000 5000 5000
500 500 500 500
100 100 100 100
35600 35600 35600 35600
-16600 -14600 -12600 -10600
-158200 -172800 -185400 -196000
1 1 1 1

year 1
month 4 month 5 month 6 month 7
15500 15500 15500 15500
22000 22000 22000 22000
 37500 37500 37500 37500

620000 620000 620000 620000

660000 660000 660000 660000
1280000 1280000 1280000 1280000

450000 450000 450000 450000

112500 112500 112500 112500
112500 112500 112500 112500
215000 215000 215000 215000
890000 890000 890000 890000

390000 390000 390000 390000

30% 30% 30% 30%
scenario 3:
price/ unit 125 345
unit volume/ year 8400 4200
cost of goods sold/ un 68.2 68.2

1050000 1449000
31500 43470
1018500 1405530
572880 286440
445620 1119090
1564710

245000
210000
112000
997710
458946.6
538763.4
MONTH 11 MONTH 12 MONTH 1 MONTH 2 MONTH 3
100 100 100 100 100
1100 1200 1300 1400 1500
5000 5000 5000 5000 5000
22000 24000 26000 28000 30000
27000 29000 31000 33000 35000

30000 30000 30000 30000 30000

5000 5000 5000 5000 5000
500 500 500 500 500
100 100 100 100 100
35600 35600 35600 35600 35600
-8600 -6600 -4600 -2600 -600
-204600 -211200 -215800 -218400 -219000
1 1 1 1 1

month 8 month 9 month 10 month 11 month 12

15500 15500 15500 15500 15500
22000 22000 22000 22000 22000
 37500 37500 37500 37500 37500

620000 620000 620000 620000 620000

660000 660000 660000 660000 660000
1280000 1280000 1280000 1280000 1280000

450000 450000 450000 450000 450000

112500 112500 112500 112500 112500
112500 112500 112500 112500 112500
215000 215000 215000 215000 215000
890000 890000 890000 890000 890000

390000 390000 390000 390000 390000

30% 30% 30% 30% 30%
price/ unit 125 345
unit volume/ year 2213.61029297783 1106.80514648892
cost of goods sold/ un 68.2 68.2

276701.286622229 381847.775538676
8301.03859866686 11455.4332661603
268400.248023562 370392.342272515
150968.221981088 75484.110990544
117432.026042474 294908.231281971
412340.257324445

245000
55340.2573244458
112000
0
0
0
 YEAR 2
MONTH 4 MONTH 5 MONTH 6 MONTH 7 MONTH 8
100 100 100 100 100
1600 1700 1800 1900 2000
5000 5000 5000 5000 5000
32000 34000 36000 38000 40000
37000 39000 41000 43000 45000

30000 30000 30000 30000 30000

5000 5000 5000 5000 5000
500 500 500 500 500
100 100 100 100 100
35600 35600 35600 35600 35600
1400 3400 5400 7400 9400
-217600 -214200 -208800 -201400 -192000
1 1 1 1 1

year 2
month 1 month 2 month 3 month 4 month 5
15733 15968 16208 16451 16698
22440 22889 23347 23814 24290
 38172.5 38857.2875 39554.5908125 40264.6425546875 40987.6797306078

648179 657902 667770 677787 687954

673200 686664 700397.28 714405.2256 728693.330112
1321379 1344565.685 1368167.490275 1392191.98902912 1416646.89499256

467231.4 475613.199 484148.191545 492839.224869375 501689.19990264

116807.85 116571.8625 118663.7724375 120793.927664063 122963.039191823
116807.85 116571.8625 118663.7724375 120793.927664063 122963.039191823
219300 219300 219300 219300 219300
920147.1 928056.924 940775.73642 953727.0801975 966915.278286287

401231.9 416508.761 427391.753855 438464.908831625 449731.616706275

30% 31% 31% 31% 32%
MONTH 9 MONTH 10 MONTH 11 MONTH 12 MONTH 1
100 100 100 100 100
2100 2200 2300 2400 2500
5000 5000 5000 5000 5000
42000 44000 46000 48000 50000
47000 49000 51000 53000 55000

30000 30000 30000 30000 30000

5000 5000 5000 5000 5000
500 500 500 500 500
100 100 100 100 100
35600 35600 35600 35600 35600
11400 13400 15400 17400 19400
-180600 -167200 -151800 -134400 -115000
1 1 1 1 1

year 2
month 6 month 7 month 8 month 9 month 10
16948 17287 17633 17986 18345
24776 25271 25777 26292 26818
41723.9438149189 42558.4226912173 43409.591145042 44277.782967943 45163.338627301

698273 712238 726483 741013 755833

743267.19671424 758132.540648525 773295.1914615 788761.09529073 804536.31719654
1441540.06506801 1470370.86636937 1499778.2836968 1529773.8493707 1560369.3263581

510701.072294608 520915.0937405 531333.39561531 541960.06352762 552799.26479817

125171.831444757 127675.268073652 130228.77343513 132833.34890383 135490.0158819
125171.831444757 127675.268073652 130228.77343513 132833.34890383 135490.0158819
219300 219300 219300 219300 219300
980344.735184121 995565.629887804 1011090.9424856 1026926.7613353 1043079.296562

461195.329883889 474805.236481567 488687.3412112 502847.08803542 517290.02979613

32% 32% 33% 33% 33%
 YEAR 3
MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7
100 100 100 100 100 100
2600 2700 2800 2900 3000 3100
5000 5000 5000 5000 5000 5000
52000 54000 56000 58000 60000 62000
57000 59000 61000 63000 65000 67000

30000 30000 30000 30000 30000 30000

5000 5000 5000 5000 5000 5000
500 500 500 500 500 500
100 100 100 100 100 100
35600 35600 35600 35600 35600 35600
21400 23400 25400 27400 29400 31400
-93600 -70200 -44800 -17400 12000 43400
1 1 1 1 0 0

month 11 month 12
18712 19087
27354 27901
46066.605399847 46987.937507844

770950 786369
820627.04354047 837039.58441128
1591576.7128853 1623408.247143

563855.25009413 575132.35509602
138199.81619954 140963.81252353
138199.81619954 140963.81252353
219300 219300
1059554.8824932 1076359.9801431

532021.83039205 547048.26699989
33% 34%
MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12 MONTH 1
100 100 100 100 100 100
3200 3300 3400 3500 3600 3700
5000 5000 5000 5000 5000 5000
64000 66000 68000 70000 72000 74000
69000 71000 73000 75000 77000 79000

30000 30000 30000 30000 30000 30000

5000 5000 5000 5000 5000 5000
500 500 500 500 500 500
100 100 100 100 100 100
35600 35600 35600 35600 35600 35600
33400 35400 37400 39400 41400 43400
76800 112200 149600 189000 230400 273800
0 0 0 0 0 0
 YEAR 4
MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7
100 100 100 100 100 100
3800 3900 4000 4100 4200 4300
5000 5000 5000 5000 5000 5000
76000 78000 80000 82000 84000 86000
81000 83000 85000 87000 89000 91000

30000 30000 30000 30000 30000 30000

5000 5000 5000 5000 5000 5000
500 500 500 500 500 500
100 100 100 100 100 100
35600 35600 35600 35600 35600 35600
45400 47400 49400 51400 53400 55400
319200 366600 416000 467400 520800 576200
0 0 0 0 0 0
MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12 MONTH 1
100 100 100 100 100 100
4400 4500 4600 4700 4800 4900
5000 5000 5000 5000 5000 5000
88000 90000 92000 94000 96000 98000
93000 95000 97000 99000 101000 103000

30000 30000 30000 30000 30000 30000

5000 5000 5000 5000 5000 5000
500 500 500 500 500 500
100 100 100 100 100 100
35600 35600 35600 35600 35600 35600
57400 59400 61400 63400 65400 67400
633600 693000 754400 817800 883200 950600
0 0 0 0 0 0
 YEAR 5
MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7
100 100 100 100 100 100
5000 5100 5200 5300 5400 5500
5000 5000 5000 5000 5000 5000
100000 102000 104000 106000 108000 110000
105000 107000 109000 111000 113000 115000

30000 30000 30000 30000 30000 30000

5000 5000 5000 5000 5000 5000
500 500 500 500 500 500
100 100 100 100 100 100
35600 35600 35600 35600 35600 35600
69400 71400 73400 75400 77400 79400
1020000 1091400 1164800 1240200 1317600 1397000
0 0 0 0 0 0
MONTH 8 MONTH 9 MONTH 10 MONTH 11 MONTH 12
100 100 100 100 100
5600 5700 5800 5900 6000
5000 5000 5000 5000 5000
112000 114000 116000 118000 120000
117000 119000 121000 123000 125000

30000 30000 30000 30000 30000

5000 5000 5000 5000 5000
500 500 500 500 500
100 100 100 100 100
35600 35600 35600 35600 35600
81400 83400 85400 87400 89400
1478400 1561800 1647200 1734600 1824000
0 0 0 0 0
I/S

REVENUE
COSTS
PROFIT

STATEMNET IN CHANGES IN EQUITY

OPNING
PROFIT/LOSS
ADDITION
W/D
CLOSING

BALANCE SHEET
ASSETS
CASH
A/R 10%
INVENTORY 5%
PREPAYMENTS
F.A
TOTAL ASSETS

LIABILITIES
A/P 12%
EQUITY

TOTAL LIABILITY AND EQUITY

CHANGE IN CASH

CASH FLOW STATEMENT:

CF FROM OPRATING ACTIVITIES:

1) NET INCOME
2) ADD BACK DEP

3) A/R
INVENTORY
PREPAYMENTS

A/P

CF FROM INVESTING ACTIVITIES

F.A
EQUITY

CHANGE IN CASH
OPENING CASH
CLOSING CASH
YEAR 0 YEAR 1 YEAR 2 YEAR 3
15%
8%
12000 15000 17000 17000
10000 10000 11000 11000
2,000 5,000 6000 6000

52,000 57,000 63,000

2000 5,000 6,000 6,000
50,000

52,000 57,000 63,000 69,000

52,000 100,750 106,620 112,620

1500 1700 1700
500 550 550
450 450 450
45000 45000 45000
52,000 148,200 154,320 160,320

1200 1320 1320

52,000 57,000 63,000 69,000

52,000 58,200 64,320 70,320

 2,000 5,000 6,000 6,000

0 -1,500 -200 0
0 -500 -50 0
0 -450 0 0

-0.12 1200 120 0

0 45,000 0 0
50,000 0 0 0

52,000 48,750 5,870 6,000

0 52,000 100,750 106,620
52,000 100,750 106,620 112,620
YEAR 4
15%
8%
17000
11000
6000

69,000
6,000

20000
55,000

93,870
1700
550
200
50,000
146,320

1320
55,000

56,320
 6,000

0
0
250

-5,000
-20,000

-18,750
112,620
93,870