Terminal CF 0

Salvage value 0
Recovery of WC 0
initial investment 624,450 Salvage value* Tc 0
Tax rate 30%
Salvage 0
Recovery wc 0
0 1 2 3 4
Initial investment 624,450
Sales 658,000 877,500 1,404,000 1,404,000
Expense 516,000 675,000 966,000 966,000
EBIT 142,000 202,500 438,000 438,000
Interest on caution money 4,200 6,000 9,600 9,600
Interest on borrowed funds 90,000 90,000 90,000 90,000
Earnings before tax 56,200 118,500 357,600 357,600
Tc (30%) 16860 35550 107280 107280
Earnings after tax 39,340 82,950 250,320 250,320
OCF 39,340 82,950 250,320 250,320

Terminal CF
CF -624,450 39,340 82,950 250,320 250,320
WACC 11%
Discount factor 1 0.9050 0.819 0.741 0.671
CF after discount -624,450 35,602 67,935 185,528 167,898
NPV -15,543
IRR 9.7184%
 5
WACC kd*(1-Tc) Kd 0.15
1,404,000 0.105
966,000
438,000
9,600
90,000
357,600
107280
250,320
250,320

0
250,320

0.607
151,944