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Cash Flow Analysis and Projections

The document presents a financial analysis of projected cash flows over five years, detailing savings, depreciation expenses, profits before and after tax, and net cash flows. It includes calculations for net present value, internal rate of return, and payback period, indicating a positive net present value of 14,932.01 and an IRR of 20.58%. Additionally, it compares cash flows under different discount rates, showing varying net cash flows and cumulative balances.

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Nouman Sheikh
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39 views4 pages

Cash Flow Analysis and Projections

The document presents a financial analysis of projected cash flows over five years, detailing savings, depreciation expenses, profits before and after tax, and net cash flows. It includes calculations for net present value, internal rate of return, and payback period, indicating a positive net present value of 14,932.01 and an IRR of 20.58%. Additionally, it compares cash flows under different discount rates, showing varying net cash flows and cumulative balances.

Uploaded by

Nouman Sheikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Cash Outflow 60,000.

00
Projected Cash Flows
Years
1 2 3 4 5
a Savings 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Depreciation rate 0.3333 0.4445 0.1481 0.0741
b Depreciation Expense 19,998.00 26,670.00 8,886.00 4,446.00 -
c=a-b Profit Before Tax 2.00 (6,670.00) 11,114.00 15,554.00 20,000.00
d = c x Tax rate Tax @ 38% 0.76 (2,534.60) 4,223.32 5,910.52 7,600.00
e=c-d Profit after Tax 1.24 (4,135.40) 6,890.68 9,643.48 12,400.00

f=a-d Net Cash Flow 19,999.24 22,534.60 15,776.68 14,089.48 12,400.00

Years Net Cash Flow Cumm Bal DF @ 12% DCF Cumm Bal DF @ 15%
0 (60,000.00) (60,000.00)
1 19,999.24 (40,000.76) 0.893 17,856.46 (42,143.54) 0.870
2 22,534.60 (17,466.16) 0.797 17,964.45 (24,179.09) 0.756
3 15,776.68 (1,689.48) 0.712 11,229.53 (12,949.56) 0.658
4 14,089.48 12,400.00 0.636 8,954.12 (3,995.44) 0.572
5 12,400.00 0.567 7,036.09 3,040.65 0.497
6 12,400.00 0.507 6,282.23 0.432
7 12,400.00 0.452 5,609.13 0.376
74,932.01
Payback Period 3.12 DPBP 4.57
Net Present Value 14,932.01 IRR 20.58%
84,800.00

DCF DF @ 21% DCF


(60,000.00) (60,000.00)
17,390.64 0.826 16,528.30
17,039.40 0.683 15,391.44
10,373.42 0.564 8,905.52
8,055.71 0.467 6,572.85
6,164.99 0.386 4,780.74
5,360.86 0.319 3,951.02
4,661.62 0.263 3,265.31
69,046.64 59,395.17
Cash Outflow 60,000.00
Projected Cash Flows
Years
1 2 3 4 5
a Savings 20,000.00 21,200.00 22,472.00 23,820.32 25,249.54
Depreciation rate 0.3333 0.4445 0.1481 0.0741
b Depreciation Expense 19,998.00 26,670.00 8,886.00 4,446.00 -
c=a-b Profit Before Tax 2.00 (5,470.00) 13,586.00 19,374.32 25,249.54
d = c x Tax rate Tax @ 38% 0.76 (2,078.60) 5,162.68 7,362.24 9,594.82
e=c-d Profit after Tax 1.24 (3,391.40) 8,423.32 12,012.08 15,654.71

f=a-d Net Cash Flow 19,999.24 23,278.60 17,309.32 16,458.08 15,654.71


92,699.95

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