Estimation Cashflow Cost of M/C 200000

Particulars Year 0 Year 1 Year 2

Initial Outlay
Cost Of Machine -200000
Additional work capital -50000

Operational Cashflow
Sales in units 70000 70000
Sales price per unit 10 10
Sales revenue 700000 700000
Variable cost per unit 5 5
Total VC 350000 350000
Contribution 350000 350000
Cash Fixed Cost 25000 25000
EBDT 325000 325000
Dep-SLM-(C-S/N) 36000 36000
EBT 289000 289000
Tax@30% 86700 86700
PAT 202300 202300
Operational Cashflow (PAT +Dep) 238300 238300

Terminal Cashflow
Release of working Capital
Salvage Value
Total Cash flow -250000 238300 238300
IRR 93%
PVIF 1 0.833333333333333 0.694444444444444
PV of CF -250000 198583.333333333 165486.111111111
NPV 490794.302983539

Profitability Index 2.96317721193416

 SV 20000 N 5

Year 3 Year 4 Year 5

70000 70000 70000

10 10 10
700000 700000 700000
5 5 5
350000 350000 350000
350000 350000 350000
25000 25000 25000
325000 325000 325000
36000 36000 36000
289000 289000 289000
86700 86700 86700
202300 202300 202300
238300 238300 238300

50000
20000
238300 238300 308300

0.5787037037 0.48225308642 0.401877572

137905.092593 114920.9104938 123898.85545
Particulars Year 0 Year 1 Year 2 Year 3
Initial Outlay
Cost Of Equipment 140.00
Additional Equipment 7.97
Less:Subsidy -20.00
Plus:Initial Working Capital 15.00

Operational Cashflow
Sales in units 80000 120000 300000
Sales price per unit 100 100 100
Sales revenue 80 120 300
Variable cost per unit (40%) 40 40 40
Total VC 32 48 120
Contribution 48 72 180
Cash Fixed Cost 32 32 32
EBDT 16 40 148
Dep-SLM-(C-S/N) First Asset 17.5 17.5 17.5
Dep-SLM-(C-S/N) Additional Asset 0 0 1.5
Less:Total Dep 17.5 17.5 19
EBT -1.5 22.5 129
Tax@40% -0.6 9 51.6
PAT -0.9 13.5 77.4
Operational Cashflow (PAT +Dep) 16.6 31 96.4

Terminal Cashflow
Release of working Capital
Salvage Value
Total Cash flow 142.97 16.6 31 96.4

PVIF@12% 1 0.89 0.80 0.71

PV of CF 142.97 14.82 24.71 68.62
NPV 169.92

Profitability Index 2.19

Year 4 Year 5 Year 6 Year 7 Year 8 All Rs. In Lakh

300000 300000 200000 200000 200000

100 100 100 100 100
300 300 200 200 200
40 40 40 40 40
120 120 80 80 80
180 180 120 120 120
32 32 32 32 32
148 148 88 88 88
17.5 17.5 17.5 17.5 17.5
1.5 1.5 1.5 1.5 1.5
19 19 19 19 19
129 129 69 69 69
51.6 51.6 27.6 27.6 27.6
77.4 77.4 41.4 41.4 41.4
96.4 96.4 60.4 60.4 60.4

15
1
96.4 96.4 60.4 60.4 76.4

0.64 0.57 0.51 0.45 0.40

61.26 54.70 30.60 27.32 30.86