Cost 200,000

Shipping 10,000
Installation 30,000
Total cost 240,000 60,000
Life (Years) 4 (straight line)
Market value 25,000
Annual sales 1,250
Price / Unit 200
Cost / Unit 100
NOWC 12% of sales
Tax 40%
WACC 10%
Growth / Year 0.03 (Price & VC)

0 1 2 3
Units sold 1,250 1,250 1,250
Unit price 200 206 212
Unit cost (100) (103) (106)
sales 250,000 257,500 265,225
costs (125,000) (128,750) (132,613)
NOWC (30,000) (900) (927) (955)
Depreciation (60,000) (60,000) (60,000)
EBIT 64,100 67,823 71,658
Tax @ 40% (25,640) (27,129) (28,663)
NOPAT 38,460 40,694 42,995
NOCF 98,460 100,694 102,995
Salvage
Capital G / L
Tax on salvage
Net CF - - -
Terminal CF (270,000) 98,460 100,694 102,995
Incremental CF (171,540) (70,846)

NPV 106,156.30
IRR 21.73%

Payback (years) 2.69

MIRR 17.05%
 4
1,250
219
(109)
273,182
(136,591)
32,782
(60,000)
109,373
(43,749)
65,624
125,624
25,000
25,000
(10,000)
15,000
140,624
Cost 200,000
Shipping 10,000
Installation 30,000
Total cost 240,000 60,000
Life (Years) 4 (straight line)
Market Value 100,000
Annual sales 1,250
Price / Unit 200
Cost / Unit 100
NOWC 12% of sales
Tax 40%
WACC 10%
Growth / Year 3% (Price & VC)

0 1 2 3
Units sold 1,250 1,250 1,250
Unit price 200 206 212
Unit cost (100) (103) (106)
sales 250,000 257,500 265,225
costs (125,000) (128,750) (132,613)
NOWC (30,000) (900) (927) 31,827
Depreciation (60,000) (60,000) (60,000)
EBIT 64,100 67,823 104,440
Tax @ 40% (25,640) (27,129) (41,776)
NOPAT 38,460 40,694 62,664
NOCF 98,460 100,694 122,664
Salvage 100,000
Capital G / L 40,000
Tax on salvage (16,000)
Net CF - - 84,000
Terminal CF (270,000) 98,460 100,694 206,664
Incremental CF (171,540) (70,846)

NPV 87,996.60
IRR 20.33%

Payback (years) 2.34

MIRR 17.37%
Cost 200,000
Shipping 10,000
Installation 30,000
Total cost 240,000 60,000
Life (Years) 4 (straight line)
Market value 50,000
Annual sales 1,250
Price / Unit 200
Cost / Unit 100
NOWC 12% of sales
Tax 40%
WACC 10%
Growth / Year 3% (Price & VC)

0 1 2 3
Units sold 1,250 1,250 1,250
Unit price 200 206 212
Unit cost (100) (103) (106)
sales 250,000 257,500 265,225
costs (125,000) (128,750) (132,613)
NOWC (30,000) (900) (927) 31,827
Depreciation (60,000) (60,000) (60,000)
EBIT 64,100 67,823 104,440
Tax @ 40% (25,640) (27,129) (41,776)
NOPAT 38,460 40,694 62,664
NOCF 98,460 100,694 122,664
Salvage 50,000
Capital G / L (10,000)
Tax on salvage (4,000)
Net CF - - 54,000
Terminal CF (270,000) 98,460 100,694 176,664
Incremental CF (171,540) (70,846)

NPV 65,457.16
IRR 16.59%

Payback (years) 2.40

MIRR 14.62%