Year 0 1 2 3 Comment

Capital Items
Capital Investment As Described
Salvage Value As Described
Capital Gains Tax 0 Based on (Salvage - Basis)
Investment-Related Cash Flow 0 0 0 0
Operating Items
Revenue As Described
Operating Costs or Expenses As Described
Tax Depreciation SL or ACRS, as described
Taxable Income 0 0 0 Revenue-Costs-Depreciation
Income Tax 0 0 0 Tax Rate times Taxable Income
Working Capital As Described - often can assume zero at end
Change in Working Capital 0 0 0 0 Treat increase (decrease) as cash outflow (inflow)
Operating Cash Flow 0 0 0 0 Revenue-Costs-IncomeTax-Change in WC
Free Cash Flow 0 0 0 0 Investment Related plus Operating
Present Value of FCF 0 0 0 0
NPV 0 Sum of PVs
Additional Calculations Required
Tax Basis 0 0 0 0
Additional Input Items
Tax Rate 0.35
Discount Rate 0.15
Capital Budgeting Template
As Described
As Described
Based on (Salvage - Basis)
As Described
As Described
SL or ACRS, as described
Revenue-Costs-Depreciation
Tax Rate times Taxable Income
As Described - often can assume zero at end
Treat increase (decrease) as cash outflow (inflow)
Revenue-Costs-IncomeTax-Change in WC
Investment Related plus Operating
Sum of PVs
Year 0 1 2
Cash Flow
IRR #NUM!