1.

Net Initial Investment

(AUTO PRESS)
Purchase of Price of New Asset(Auto Press) 930,000
Installation Cost 50,000
Net working Capital 180,000
Proceeds -520,000
Tax on sale of Old Press 156,000
Total Initial Investment 796,000

REGULAR PRESS
Purchase Price of New Asset 740,000
Installation Cost 30,000
Proceed from sale of Old Press -520,000
Tax on sale of Old Press 156,000
Total Initial Investment 406,000

Net Working Capital ( Base on Auto Press)

Increase in Accounts Recievable 220,000
Increase in Cash 35,000
Decrease in Invetories -30,000
225,000

Increase in Accounts Payable -45,000

Networking Capital 180,000

Current Asset 520,000*.30

Tax on sale 156,000

TERMINAL CASH FLOW

(AFTER PROCEEDS OF AUTO PRESS)
Proceeds from Sale 500,000
Tax on Sale -150,000
Total After Tax 350,000

(AFTER PROCEEDS OF CURRENT PRESS)

Proceeds from Sale 250,000
Tax on Sale 75,000
Total After Tax -175,000
Change in Networking Capital and 156,000
Terminal Cash Flow of Auto Current Press 331,000

(AFTER PROCEED OF REGULAR PRESS)

Proceed from Sale 430,000
Tax on Sale -129,000
Total After Tax 301,000

(AFTER PROCEEDS OF CURRENT PRESS)

Proceeds from Sale 250,000
Tax on Sale -75,000
Total After Tax -175,000
Terminal Cash Flow of Reg.& Current Press 126,000
Total Operating Cash Flow for 5 years (Auto press)
YEAR EBTD Depreciation EBT TAX 30%
1 350,000 96,000 254,000 76,200
2 370,000 96,000 274,000 82,200
3 400,000 96,000 304,000 91,200
4 430,000 96,000 334,000 100,000
5 470,000 96,000 374,000 112,000

PAYBACK PERIOD
AUTO PRESS Initial Investment
YEAR OPERATING CASH INFLOWNET INVESTED CASH 796,000
1 273,800 -522,200
2 287,800 -234,400
3 308,800 74,400
4 329,800 404,200
5 375,800 780,000
3

REGULAR PRESS Initial Investment

YEAR OPERATING CASH INFLOW NET INVESTED CASH 406,000
1 237,400 -168,600
2 237,400 68,000
3 237,400 306,200
4 237,400 543,600
5 237,400 781,000
one point seventy one
 Total Operating Cash Flow for 5 years (C
TOTAL Net Cash Inflow: Operating EAT
177,800 273,000
191,800 287,800
212,800 308,800
233,800 329,800
261,800 357,800
 (REGULAR PRESS)

tal Operating Cash Flow for 5 years (Current Press)

YEAR EBTD Depr. EBT TAXES 30% TOTAL
1 220,000 50,000 170,000 51,000 119,000
2 220,000 50,000 170,000 51,000 119,000
3 220,000 220,000 66,000 154,000
4 220,000 220,000 66,000 154,000
5 200,000 220,000 66,000 154,000
100,000 Total
(REGULAR PRESS)
YEAR EBITDA DEPR. EBIT TAX TOTAL
1 310,000 68,000 242,000 72,600 169,400
2 310,000 68,000 242,000 72,600 169,400
3 310,000 68,000 242,000 72,600 169,400
4 310,000 68,000 242,000 72,600 169,400
5 310,000 68,000 242,000

NET CASH INFLOW

169,000
169,000
204,000
204,000
204,000
950,000
NET CASH INFLOW
237,400
237,400
237,400
237,400
72,600