1) C Equipment

Additional
NWC
Depre
Sales
operating exp
PBT
Tax
PAT
Add: derp
Salvage value
NVC
CF
PV
NPV

rate
2) B
Fixed Capital outlay
Depreciation

NPV

3) C

4) C
Fixed capital
NWC

Sales
Operating Exp
 Depreciation
PBT
Tax
PAT
Add: depre
CF

5) A
Fixed Capital
NWC

After 5 yr machine value 15 (Depreciation) depre

Tax
After tax depre
Add: depreciation
NWC
Machine
Non operating cash flow
 Practice Problems

0 1 2 3 4
-350000
-110000
-73000
-92000 -92000 -92000 -92000
265000 265000 265000 265000
-83000 -83000 -83000 -83000
90000 90000 90000 90000
36000 36000 36000 36000
54000 54000 54000 54000
92000 92000 92000 92000

-533000 146000 146000 146000 146000

-533000 132727 120661 109692 99720
97449

0.1
0 1 2 3 4
-100000
-12500 -12500 -12500 -12500
-7500 -7500 -7500 -7500

12500 12500 12500 12500

5000 5000 5000 5000
-100000 4545.45454545455 4132.23140495868 3756.57400450789 3415.06727682535
-73325.3690104867

0 1 2 3 4
-400000
-40000

240000 240000 240000 240000

-110000 -110000 -110000 -110000
 -40000 -40000 -40000 -40000
90000 90000 90000 90000
-27000 -27000 -27000 -27000
63000 63000 63000 63000
40000 40000 40000 40000
103000 103000 103000 103000

0 1 2 3 4
-30
-8

-3 -3 -3 -3
1.2 1.2 1.2 1.2
 5

-92000
265000
-83000
90000
36000
54000
92000
51000
73000
270000
167649

5 6 7 8

-12500 -12500 -12500 -12500

-7500 -7500 -7500 -7500

12500 12500 12500 12500

5000 5000 5000 5000
3104.60661529577 2822.37 2565.791 2332.537

5 6 7 8 9 10

240000 240000 240000 240000 240000 240000

-110000 -110000 -110000 -110000 -110000 -110000
-40000 -40000 -40000 -40000 -40000 -40000
90000 90000 90000 90000 90000 90000
-27000 -27000 -27000 -27000 -27000 -27000
63000 63000 63000 63000 63000 63000
40000 40000 40000 40000 40000 40000
103000 103000 103000 103000 103000 103000

-3
1.2
-1.8
3
8
12.6
21.8