TUTORIAL 1

Name:
Student ID:

After-tax cash flow

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6 7
Prodn Mbopd 60 50 40 30 20
Price $/bbl 20 20 20 20 20 20 20
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20 20

Revenue calculation
Prodn Mbopd 60 50 40 30 20
Days per yr No 365 365 365 365 365 365 365
Prodn MMbbl
Price $/bbl
Revenue $MM

Before-tax net cash flow ("BTNCF")

Revenue $MM
Capex $MM
Opex $MM
BTNCF $MM

Income tax Depr. at 20% based on declining balance from prod. start
Revenue $MM
Deprn at 20% $MM
Opex $MM
Taxable income $MM
Tax at 40% $MM

After-tax net cash flow ("ATNCF")

Revenue $MM
Capex $MM
Opex $MM
Tax $MM
ATNCF $MM
 PCB2013  2014 JAN

TUTORIAL 1
Name:
Student ID:

After-tax cash flow - answer

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6 7
Prodn Mbopd 60 50 40 30 20
Price $/bbl 20 20 20 20 20 20 20
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20 20

Revenue calculation
Prodn Mbopd 60 50 40 30 20
Days per yr No 365 365 365 365 365 365 365
Prodn MMbbl 73 22 18 15 11 7
Price $/bbl 20 20 20 20 20 20 20
Revenue $MM 1,460 438 365 292 219 146

Before-tax net cash flow ("BTNCF")

Revenue $MM 1,460 438 365 292 219 146
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20 20
BTNCF $MM 1,160 -50 -150 418 345 272 199 126

Income tax Depreciate at 20% based on declining balance

Revenue $MM 1,460 438 365 292 219 146
Deprn at 20% $MM 200 40 32 26 20 16
Opex $MM 100 20 20 20 20 20
Taxable income $MM 1,226 378 313 246 179 110
Tax at 40% $MM 490 151 125 99 71 44

After-tax net cash flow ("ATNCF")

Revenue $MM 1,460 438 365 292 219 146
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20 20
Tax $MM 490 151 125 99 71 44
ATNCF $MM 670 -50 -150 267 220 173 128 82

variable: production
sensitivity: 0%
TUTORIAL 1
Name:
Student ID:

After-tax cash flow

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6 7
Prodn Mbopd 60 50 40 30 20
Price $/bbl 22 22 22 22 22 22 22
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20 20

Revenue calculation
Prodn Mbopd 60 50 40 30 20
Days per yr No 365 365 365 365 365 365 365
Prodn MMbbl
Price $/bbl
Revenue $MM

Before-tax net cash flow ("BTNCF")

Revenue $MM
Capex $MM
Opex $MM
BTNCF $MM

Income tax Depr. at 20% based on declining balance from prod. start
Revenue $MM
Deprn at 20% $MM
Opex $MM
Taxable income $MM
Tax at 40% $MM

After-tax net cash flow ("ATNCF")

Revenue $MM
Capex $MM
Opex $MM
Tax $MM
ATNCF $MM
TUTORIAL 1
Name:
Student ID:

After-tax cash flow - answer

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6
Prodn Mbopd 60 50 40 30
Price $/bbl 22 22 22 22 22 22
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20

Revenue calculation
Prodn Mbopd 60 50 40 30
Days per yr No 365 365 365 365 365 365
Prodn MMbbl 73 22 18 15 11
Price $/bbl 22 22 22 22 22 22
Revenue $MM 1,606 482 402 321 241

Before-tax net cash flow ("BTNCF")

Revenue $MM 1,606 482 402 321 241
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20
BTNCF $MM 1,306 -50 -150 462 382 301 221

Income tax Depreciate at 20% based on declining balance

Revenue $MM 1,606 482 402 321 241
Deprn at 20% $MM 200 40 32 26 20
Opex $MM 100 20 20 20 20
Taxable income $MM 1,372 422 350 276 200
Tax at 40% $MM 549 169 140 110 80

After-tax net cash flow ("ATNCF")

Revenue $MM 1,606 482 402 321 241
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20
Tax $MM 549 169 140 110 80
ATNCF $MM 757 -50 -150 293 242 191 141
 7
20
22

20

20
365
7
22
161

161

20
141

lining balance
161
16
20
124
50

161

20
50
91
TUTORIAL 1
Name:
Student ID:

After-tax cash flow

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6 7
Prodn Mbopd 60 50 40 30 20
Price $/bbl 20 20 20 20 20 20 20
Capex $MM 220 55 165
Opex $MM 100 20 20 20 20 20

Revenue calculation
Prodn Mbopd 60 50 40 30 20
Days per yr No 365 365 365 365 365 365 365
Prodn MMbbl
Price $/bbl
Revenue $MM

Before-tax net cash flow ("BTNCF")

Revenue $MM
Capex $MM
Opex $MM
BTNCF $MM

Income tax Depr. at 20% based on declining balance from prod. start
Revenue $MM
Deprn at 20% $MM
Opex $MM
Taxable income $MM
Tax at 40% $MM

After-tax net cash flow ("ATNCF")

Revenue $MM
Capex $MM
Opex $MM
Tax $MM
ATNCF $MM
TUTORIAL 1
Name:
Student ID:

After-tax cash flow - answer

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6
Prodn Mbopd 60 50 40 30
Price $/bbl 20 20 20 20 20 20
Capex $MM 220 55 165
Opex $MM 100 20 20 20 20

Revenue calculation
Prodn Mbopd 60 50 40 30
Days per yr No 365 365 365 365 365 365
Prodn MMbbl 73 22 18 15 11
Price $/bbl 20 20 20 20 20 20
Revenue $MM 1,460 438 365 292 219

Before-tax net cash flow ("BTNCF")

Revenue $MM 1,460 438 365 292 219
Capex $MM 220 55 165
Opex $MM 100 20 20 20 20
BTNCF $MM 1,140 -55 -165 418 345 272 199

Income tax Depreciate at 20% based on declining balance

Revenue $MM 1,460 438 365 292 219
Deprn at 20% $MM 220 44 35 28 23
Opex $MM 100 20 20 20 20
Taxable income $MM 1,212 374 310 244 176
Tax at 40% $MM 485 150 124 98 71

After-tax net cash flow ("ATNCF")

Revenue $MM 1,460 438 365 292 219
Capex $MM 220 55 165
Opex $MM 100 20 20 20 20
Tax $MM 485 150 124 98 71
ATNCF $MM 655 -55 -165 268 221 174 128
 7
20
20

20

20
365
7
20
146

146

20
126

lining balance
146
18
20
108
43

146

20
43
83
TUTORIAL 1
Name:
Student ID:

After-tax cash flow

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6 7
Prodn Mbopd 66 55 44 33 22
Price $/bbl 20 20 20 20 20 20 20
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20 20

Revenue calculation
Prodn Mbopd 66 55 44 33 22
Days per yr No 365 365 365 365 365 365 365
Prodn MMbbl
Price $/bbl
Revenue $MM

Before-tax net cash flow ("BTNCF")

Revenue $MM
Capex $MM
Opex $MM
BTNCF $MM

Income tax Depr. at 20% based on declining balance from prod. start
Revenue $MM
Deprn at 20% $MM
Opex $MM
Taxable income $MM
Tax at 40% $MM

After-tax net cash flow ("ATNCF")

Revenue $MM
Capex $MM
Opex $MM
Tax $MM
ATNCF $MM
TUTORIAL 1
Name:
Student ID:

After-tax cash flow - answer

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6
Prodn Mbopd 66 55 44 33
Price $/bbl 20 20 20 20 20 20
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20

Revenue calculation
Prodn Mbopd 66 55 44 33
Days per yr No 365 365 365 365 365 365
Prodn MMbbl 80 24 20 16 12
Price $/bbl 20 20 20 20 20 20
Revenue $MM 1,606 482 402 321 241

Before-tax net cash flow ("BTNCF")

Revenue $MM 1,606 482 402 321 241
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20
BTNCF $MM 1,306 -50 -150 462 382 301 221

Income tax Depreciate at 20% based on declining balance

Revenue $MM 1,606 482 402 321 241
Deprn at 20% $MM 200 40 32 26 20
Opex $MM 100 20 20 20 20
Taxable income $MM 1,372 422 350 276 200
Tax at 40% $MM 549 169 140 110 80

After-tax net cash flow ("ATNCF")

Revenue $MM 1,606 482 402 321 241
Capex $MM 200 50 150
Opex $MM 100 20 20 20 20
Tax $MM 549 169 140 110 80
ATNCF $MM 757 -50 -150 293 242 191 141
 7
22
20

20

22
365
8
20
161

161

20
141

lining balance
161
16
20
124
50

161

20
50
91
TUTORIAL 1
Name:
Student ID:

After-tax cash flow

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6 7
Prodn Mbopd 60 50 40 30 20
Price $/bbl 20 20 20 20 20 20 20
Capex $MM 200 50 150
Opex $MM 110 22 22 22 22 22

Revenue calculation
Prodn Mbopd 60 50 40 30 20
Days per yr No 365 365 365 365 365 365 365
Prodn MMbbl
Price $/bbl
Revenue $MM

Before-tax net cash flow ("BTNCF")

Revenue $MM
Capex $MM
Opex $MM
BTNCF $MM

Income tax Depr. at 20% based on declining balance from prod. start
Revenue $MM
Deprn at 20% $MM
Opex $MM
Taxable income $MM
Tax at 40% $MM

After-tax net cash flow ("ATNCF")

Revenue $MM
Capex $MM
Opex $MM
Tax $MM
ATNCF $MM
TUTORIAL 1
Name:
Student ID:

After-tax cash flow - answer

Calculate the after tax cash flow for this project.
Years
Data Units Total 1 2 3 4 5 6
Prodn Mbopd 66 55 44 33
Price $/bbl 20 20 20 20 20 20
Capex $MM 200 50 150
Opex $MM 110 22 22 22 22

Revenue calculation
Prodn Mbopd 66 55 44 33
Days per yr No 365 365 365 365 365 365
Prodn MMbbl 80 24 20 16 12
Price $/bbl 20 20 20 20 20 20
Revenue $MM 1,606 482 402 321 241

Before-tax net cash flow ("BTNCF")

Revenue $MM 1,606 482 402 321 241
Capex $MM 200 50 150
Opex $MM 110 22 22 22 22
BTNCF $MM 1,296 -50 -150 460 380 299 219

Income tax Depreciate at 20% based on declining balance

Revenue $MM 1,606 482 402 321 241
Deprn at 20% $MM 200 40 32 26 20
Opex $MM 110 22 22 22 22
Taxable income $MM 1,362 420 348 274 198
Tax at 40% $MM 545 168 139 109 79

After-tax net cash flow ("ATNCF")

Revenue $MM 1,606 482 402 321 241
Capex $MM 200 50 150
Opex $MM 110 22 22 22 22
Tax $MM 545 168 139 109 79
ATNCF $MM 751 -50 -150 292 241 190 140
 7
22
20

22

22
365
8
20
161

161

22
139

lining balance
161
16
22
122
49

161

22
49
90