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Capbudg
Capbudg
CASHFLOWDETAILS
DISCOUNTRATE
InitialInvestment=
$50,000
Revenuesinyear1=
Opportunitycost(ifany)=
$7,484
Var.Expensesas%ofRev=
Lifetimeoftheinvestment
10
SalvageValueatendofproject=
Deprec.method(1:St.line;2:DDB)=
TaxCredit(ifany)=
Otherinvest.(nondepreciable)=
$40,000
50%
1.Discountrate=
Fixedexpensesinyear1=
$10,000
Approach(1:Direct;2:CAPM)=
2a.Beta
40%
Taxrateonnetincome=
b.Risklessrate=
Ifyoudonothavethebreakdownoffixedandvariable
c.Marketriskpremium=
10%
expenses,inputtheentireexpenseasa%ofrevenues.
d.DebtRatio=
e.CostofBorrowing=
Discountrateused=
WORKINGCAPITAL
InitialInvestmentinWork.Cap=
$10,000
WorkingCapitalas%ofRev=
25%
Salvageablefractionatend=
100%
GROWTHRATES
1
Revenues
Donotenter
10.00%
10.00%
10.00%
10.00%
0.00%
0.00%
FixedExpenses
Donotenter
10.00%
10.00%
10.00%
10.00%
0.00%
0.00%
CAPITALBUDGETINGWORKSHEET
Default:Thefixedexpensegrowthrateissetequaltothegrowthrateinrevenuesbydefault.
YEAR
0
1
2
3
INITIALINVESTMENT
Investment
$50,000
TaxCredit
$5,000
NetInvestment
$45,000
+WorkingCap
$10,000
+Opp.Cost
$7,484
+Otherinvest.
$0
InitialInvestment
$62,484
SALVAGEVALUE
Equipment
WorkingCapital
OPERATINGCASHFLOWS
LifetimeIndex
Revenues
Var.Expenses
FixedExpenses
EBITDA
Depreciation
EBIT
Tax
EBIT(1t)
+Depreciation
Work.Cap
NATCF
($62,484)
DiscountFactor
1
DiscountedCF
($62,484)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
1
$40,000
$20,000
$0
$20,000
$10,000
$10,000
$4,000
$6,000
$10,000
$0
$16,000
1.10685
$14,455
1
$44,000
$22,000
$0
$22,000
$8,000
$14,000
$5,600
$8,400
$8,000
$1,000
$15,400
1.2251169225
$12,570
1
$48,400
$24,200
$0
$24,200
$6,400
$17,800
$7,120
$10,680
$6,400
$1,100
$15,980
1.3560206657
$11,784
1
$53,240
$26,620
$0
$26,620
$5,120
$21,500
$8,600
$12,900
$5,120
$1,210
$16,810
1.5009114738
$11,200
1
$58,564
$29,282
$0
$29,282
$4,096
$25,186
$10,074
$15,112
$4,096
$1,331
$17,877
1.6612838648
$10,761
1
$58,564
$29,282
$0
$29,282
$3,277
$26,005
$10,402
$15,603
$3,277
$0
$18,880
1.8387920457
$10,268
1
$58,564
$29,282
$0
$29,282
$2,621
$26,661
$10,664
$15,996
$2,621
$0
$18,618
2.0352669758
$9,148
InvestmentMeasures
NPV=
$47,928
IRR=
23.55%
CAPITALBUDGETINGWORKSHEET
ROC=
BookValue(beginning)
Depreciation
60.12%
$50,000
$10,000
$40,000
$8,000
BOOKVALUE&DEPRECIATION
$32,000
$25,600
$6,400
$5,120
$20,480
$4,096
$16,384
$3,277
$13,107
$2,621
CAPITALBUDGETINGWORKSHEET
BV(ending)
$50,000
$40,000
$32,000
$25,600
$20,480
8
$16,384
$13,107
$10,486
CAPITALBUDGETINGWORKSHEET
SCOUNTRATE
2
proach(1:Direct;2:CAPM)=
10%
Discountrate=
0.9
Risklessrate=
8.00%
Marketriskpremium=
5.50%
30.00%
CostofBorrowing=
9.00%
countrateused=
10.69%
10
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
CAPITALBUDGETINGWORKSHEET
10
$0
$0
$0
$0
$10,000
$14,641
1
$58,564
$29,282
$0
$29,282
$486
$28,796
$11,518
$17,278
$486
$0
$17,764
2.2527352522
$7,885
1
$58,564
$29,282
$0
$29,282
$0
$29,282
$11,713
$17,569
$0
$0
$17,569
2.4934400139
$7,046
1
$58,564
$29,282
$0
$29,282
$0
$29,282
$11,713
$17,569
$0
$0
$17,569
2.7598640793
$15,294
10
CAPITALBUDGETINGWORKSHEET
$10,486
$486
$10,000
$0
$10,000
$0
11
CAPITALBUDGETINGWORKSHEET
$10,000
$10,000
$10,000
12