Professional Documents
Culture Documents
yr 0 1 2 3
profit before tax 0.20 0.30 0.30
depreciation 0.20 0.20 0.20
tax (cost) 0.04 0.06 0.06
tax (cash out) 0.04 0.06
net cash from sales after tax 0.40 0.46 0.44
change in working capital -0.60
non-current asset investment -1.00
incremental cash flow -1.60 0.40 0.46 0.44
YR 0 1 2 3 4
cost savings 136500 136500 136500 136500
new equipment -670000 70000
old equipment 150000 -40000
working capital 130000 -130000
incremental cash flow -390000 136500 136500 136500 36500
interest factor 1.0000 1.1200 1.2544 1.4049 1.5735
discount factor 1.0000 0.8929 0.7972 0.7118 0.6355
present values -390,000.00 121,875.00 108,816.96 97,158.00 23,196.41
net present value -38,953.62 project should be rejected