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  • September 2013 NPV

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    Shahriar Kabir
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    This document summarizes the financial projections for a 5-year investment project. It shows an initial investment of $4 million with annual revenue increasing from $4.16 million in Year 1 to $4.8 million in Year 5. Total costs decrease each year from $3.08 million to $2.985 million as depreciation decreases. This results in positive cash flows each year between $1.81 and $2.51 million. The net present value of the project is calculated as $2.888 million, indicating the project will generate a positive return.

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    SEPTEMBER 2013 NPV

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    This document summarizes the financial projections for a 5-year investment project. It shows an initial investment of $4 million with annual revenue increasing from $4.16 million in Year 1 to $4.8 million in Year 5. Total costs decrease each year from $3.08 million to $2.985 million as depreciation decreases. This results in positive cash flows each year between $1.81 and $2.51 million. The net present value of the project is calculated as $2.888 million, indicating the project will generate a positive return.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    11 views6 pages

    September 2013 NPV

    Uploaded by

    Shahriar Kabir
    This document summarizes the financial projections for a 5-year investment project. It shows an initial investment of $4 million with annual revenue increasing from $4.16 million in Year 1 to $4.8 million in Year 5. Total costs decrease each year from $3.08 million to $2.985 million as depreciation decreases. This results in positive cash flows each year between $1.81 and $2.51 million. The net present value of the project is calculated as $2.888 million, indicating the project will generate a positive return.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 6

    Initial Investment 20 200000 4000000

    DEPRECIATION 5 34000

    PRICE QUANTITY DAYS REVENUE


    YEAR 1 800 20 260 4160000
    YEAR 2 800 20 270 4320000
    YEAR 3 800 20 280 4480000
    YEAR 4 800 20 290 4640000
    YEAR 5 800 20 300 4800000

    TAX DEPRECIATION CALCULATION


    ASSET DEPRECITION NET BOOK VALUE
    4000000 1000000 3000000
    3000000 750000 2250000
    2250000 562500 1687500
    1687500 421875 1265625
    665625 600000
    VARIABLE COST TVC FC TFC ADMIN CASH FLOW DEP
    300 1560000 11000 20 220000 300000 2080000 1000000
    300 1620000 11000 20 220000 300000 2180000 750000
    300 1680000 11000 20 220000 300000 2280000 562500
    300 1740000 11000 20 220000 300000 2380000 421875
    300 1800000 11000 20 220000 300000 2480000 665625
    PROFIT BEFORE TAX TAX TAX PAYEMENT TAX PAYEMENT
    1080000 324000 162000
    1430000 429000 214500 162000
    1717500 515250 257625 214500
    1958125 587437.5 293718.75 257625
    1814375 544312.5 272156.25 293718.75
    272156.25
    NET CASH FLOW AFTER TAX DF PV
    1918000 0.893 1712774
    1803500 0.797 1437390
    1807875 0.712 1287207
    1828656.25 0.636 1163025
    2514125 0.567 1425509
    -272156.25 0.507 -137983

    6887922

    4000000

    2887922
    YEAR 0 YEAR 1 YEAR2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
    4000000 4160000 4320000 4480000 4640000 4800000
    SALES

    VC 1560000 1620000 1680000 1740000 1800000

    0 1 2 3 4 5 6
    FC 220000 220000 220000 220000 220000

    ADMIN COST 300000 300000 300000 300000 300000

    DEPRECIATION 1000000 750000 562500 421875 665625


    TOTAL COST 3080001 2890002 2762503 2681879 2985630
    PROFIT BEFORE TAX 1079999 1429998 1717497 1958121 1814370
    TAX 162000 214500 257625 293718.8 272156.3
    TAX 162000 214500 257625 293718.8 272156.3
    TOTAL TAX 162000 376500 472125 551343.8 565875 272156.3

    PAT 917999 1053498 1245372 1406777 1248495 -272156


    DEPRECIATION 1000000 750000 562500 421875 665625 0
    CASH FLOW 1917999 1803498 1807872 1828652 1914120 -272156

    RESALE VALUE 600000


    NCF -4000000 1917999 1803498 1807872 1828652 2514120 -272156
    DF 1 0.893 0.797 0.712 0.636 0.567 0.507
    PRESENT VALUE -4000000 1712773 1437388 1287205 1163023 1425506 -137983
    NPV 2887912
    1000000 220000 300000
    750000 220000 300000
    562500 220000 300000
    421875 220000 300000
    665625 220000 300000

    162000
    214500

    257625
    293718.8
    272156.3

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