OLD EQUIPMENT

TOTAL COST

10,500,000.0

Depreciation
year -3
year -2
year -1
year 1
year 2
year 3
year 4

2,625,000.0
1,968,750.0
1,476,562.5
1,107,421.9
830,566.4
622,924.8
467,193.6

WDV at period 4

SALES
Sales in OEM
Sales in Replacement
Working Capital Required
Net Working Capital
WC
WC
WC
WC
WC

Outflow At year 0
Outflow At year 1
Outflow At year 2
Outflow At year 3
Inflow At year 4

1,401,580.81

Year 1
211,200,000
1,200,000,000
211,680,000
13,575,060
211,680,000
13,575,060
14,446,362
15,373,637

Depeciation increment
Year 1
Year 2
Year 3
Year4

178,687,500.00
134,015,625.00
100,511,718.75
75,383,789.06

Total Cash Out Flow at 0 period

For Retrenchment Compensation
TOTAL CASH OUTFLOW

926,430,000.00
990,000.00
927,420,000.00

Tax shield on STCL

Existing
New
iNcremental

TOTAL CASH FLOWS

Labor Costs
Maintenance
Operation Cost
Savings
Sales-OEM
Sales-Repet
WC inflow

WORKING CAPITAL INCREMENTAL OUTFLOW

Insurance
WC Outflow
Net Cash Flow before Tax and interest
Net Cash Flow before Tax
Net Cash Flow Before WC Impact
Net Cash Flow After WC Impact
Net Cash Flow
Tax shield on STCL
Tax shield on Bad Debt
TOTAL CASH FLOW

PV of CIF
PV of COF
NPV of Project

490,553.28
44643531.7993164
44,152,978.52

Year 1
1,848,000
1700000
0
250000
105600000
720000000

14246910
13,575,060
815,151,090
636,463,590.00
413,701,333.50
400,126,273.50
578,813,773.50

578,813,773.50

1,914,041,426.95
927,420,000.00
986,621,426.95

Year 2

Year 3

Year 4

225,680,400
1,276,020,000

241,153,612
1,356,855,867

257,687,707
1,442,812,686

225,255,060

239,701,422

255,075,059

14,446,362

15,373,637

240,075,059

Year 2

Year 3

Year 4

2,032,800.0
1700000
0
250000
112840200
765612000

2,236,080.0
3500000
0
250000
120576806.2125
814113520.2

2,459,688.0
3500000
0
250000
128843853.488444
865687611.70467
240,075,059

12822219
14,446,362

11539997.1
15,373,637

10385997.39

869,612,781
735,597,156.00
478,138,151.40
463,691,789.49
597,707,414.49

929,136,409
828,624,690.56
538,606,048.87
523,232,411.81
623,744,130.56

597,707,414.49

623,744,130.56

990,355,156
914,971,366.74
594,731,388.38
834,806,447.35
910,190,236.42
44,152,978.52
5250000
959,593,214.93

NEW EQUIPMENT
Wdv at 0 period
New Equipment Cost
Sold after at year -1 at
Removal cost
TOTAL SALE INFLOW
Total Block Value
Depreciation
Depreciation
Depreciation
Depreciation

year
year
year
year

4,429,687.50
720,000,000.0
800,000.0
50,000.0
750,000.0
719,179,687.50

1
2
3
4

WDV at period 4

Considering Inflation and sales growth

179,794,921.88
134,846,191.41
101,134,643.55
75,850,982.67
227,552,948.00