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  • Solution (Cash Flow MTE)

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    quincy saxena
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    This document outlines the equity point of view for an investment over 6 years. It shows revenues, costs, taxes, cash flows, and the overall net cash flow for the investment each year. In year 0, there is an initial investment of $100. By year 2, the net cash flow is positive at $54.53, showing the investment has started to generate returns. Over the full 6 years, the investment generates a total net cash flow of $174.24.

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    This document outlines the equity point of view for an investment over 6 years. It shows revenues, costs, taxes, cash flows, and the overall net cash flow for the investment each year. In year 0, there is an initial investment of $100. By year 2, the net cash flow is positive at $54.53, showing the investment has started to generate returns. Over the full 6 years, the investment generates a total net cash flow of $174.24.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    Download as xls, pdf, or txt
    6 views2 pages

    Solution (Cash Flow MTE)

    Uploaded by

    quincy saxena
    This document outlines the equity point of view for an investment over 6 years. It shows revenues, costs, taxes, cash flows, and the overall net cash flow for the investment each year. In year 0, there is an initial investment of $100. By year 2, the net cash flow is positive at $54.53, showing the investment has started to generate returns. Over the full 6 years, the investment generates a total net cash flow of $174.24.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 2

    Equity Investors Point of View

    0 1 2
    Equity Funds -100
    Revenues 500 500
    Operating Costs 320 320
    Depreciation 83.33 55.56
    Interest on Term Loan 30 28.50
    Interest on Working Capital Advance 18 18
    Profit Before Tax (4-5-6-7-8) 48.67 77.94
    Tax 24.33 38.97
    Profit After Tax (9-10) 24.33 38.97
    Preference Dividend 0 0
    Net Salvage Value of Fixed Assets
    Net Salvage Value of Current Assets
    Repayment of Term Loan 0 40
    Repayment of Working Capital 0 0
    Retirement of Trade Credit 0 0
    (A) Initial Investment (3) -100
    (B) Operating Cash Flows (11-12+6) 107.67 94.53
    (C) Liquidation, Retirement & Terminal Cash Flows (13+14-15-16-17) 0 -40
    Net Cash Flows (A+B+C or 18+19+20) -100 107.67 54.53
    3 4 5 6

    500 500 500 500


    320 320 320 320
    37.04 24.69 16.46 10.97
    22.50 16.50 10.50 4.50
    18 18 18 18
    102.46 120.81 135.04 146.53
    51.23 60.41 67.52 73.26
    51.23 60.41 67.52 73.26
    0 0 0 0
    80
    200
    40 40 40 40
    0 0 0 100
    0 0 0 50

    88.27 85.10 83.98 84.24


    -40 -40 -40 90
    48.27 45.10 43.98 174.24

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