Year 1
A)
B)
C)
Sales
COGS
Selling&Admn expenses
Depreciation-SLM
EBIT
Corp Tax @40%
PAT
+Depreciation
-Working capital
FCFF
Investments
Capital goods
Working Capital
Market
development
Investments
Rate
NPV
IRR
Year 2
Year 3
10000000 13000000 13000000
6000000 7800000 7800000
2350000 3055000 3055000
100000
1550000
620000
930000
100000
-2700000
-1700000 -1670000
100000
2045000
818000
1227000
100000
-810000
517000
100000
2045000
818000
1227000
100000
0
1327000
Year 4
8666667
5200000
2036667
100000
1330000
532000
798000
100000
1170000
2068000
-500000
-2700000 -3510000 -3510000 -2340000 -1170000
-$1,200,000.00
20%
161474
21.79%
As the company is getting a positive NPV of $ 161474 and also IRR is 21.79% which is higher than discount rate, it
Year 5
4333333
2600000
1018333
100000
615000
246000
369000
100000
2340000
2809000
h is higher than discount rate, it is profitable for the company to introduce the new product.
SCENARIO: 25 YEARS USE WITH TAX
Purchase Price
Exptected Rate of Inflation
Tax Rate
Discount Rate
Rate of Increase of Operating Costs
39000000
3.00%
35.00%
9.00%
4.00%
Average Daily Hire Rate
No. of days in year
Maintenance days
Days on which revenue is earned
Annual Revenue
2001
2002
2003
20000
365
8
357
7140000
2004
20200
366
8
358
7231600
Operating Costs per day
Annual Operating Costs
4000
1460000
4160
1522560
-3900000 -3900000 -31200000
1560000
1560000
4120000
1442000
2678000
4120000
4149040
1452164
2696876
4149040
15000
15450
-3900000 -4400000 -26977000
Rs. -4,566,937.03
4241426
Survey Capital Expenditure
Depreciation on Survey Capital Expenditure
Purchase Cost
Depreciation on Purchase Cost
Operating Profit
Tax @ 35%
PAT
PAT (No Tax)
Change in Net Working Capital
Cash flow
NPV
500000
SCENARIO: 25 YEARS WITHOUT TAX
2001
Average Daily Hire Rate
No. of days in year
Maintenance days
Days on which revenue is earned
Annual Revenue
2002
2003
20000
365
8
357
7140000
2004
20200
366
8
358
7231600
Operating Costs per day
Annual Operating Costs
4000
1460000
4160
1522560
-3900000 -3900000 -31200000
1560000
1560000
4120000
4120000
4149040
4149040
15000
15450
-3900000 -4400000 -25535000
Rs. 3,078,974.12
5693590
Survey Capital Expenditure
Depreciation on Survey Capital Expenditure
Purchase Cost
Depreciation on Purchase Cost
Operating Profit
PAT (No Tax)
Change in Net Working Capital
Cash flow
NPV
500000
2005
20400
365
8
357
7282800
2006
18714
365
8
357
6680898
2007
17283
365
8
357
6170031
2008
17481
366
12
354
6188274
2009
17682
365
12
353
6241746
2010
17886
365
12
353
6313758
2011
18092
365
12
353
6386476
2012
17428
366
12
354
6169512
2013
17628
365
16
349
6152172
4326.4 4499.456 4679.434 4866.612 5061.276 5263.727 5474.276 5693.247 5920.977
1579136 1642301 1707993 1781180 1847366 1921260 1998111 2083728 2161157
300000
60000
60000
60000
60000
350000
60000
70000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
4143664
1450282
2693382
4143664
3478597
1217509
2261088
3478597
2902038
1015713
1886324
2902038
2787094 2774380 2772498 2768365 2465784 2361015
975483 971033.1 970374.2 968927.8 863024.2 826355.4
1811611 1803347 1802123 1799437 1602759 1534660
2787094 2774380 2772498 2768365 2465784 2361015
15913.5 16390.91 16882.63 17389.11 17910.78 18448.11 19001.55
19571.6 20158.75
4237468
3804697
3129442
3414222
3405436
3403675
3400436
2853188
3144501
2005
20400
365
8
357
7282800
2006
18714
365
8
357
6680898
2007
17283
365
8
357
6170031
2008
17481
366
12
354
6188274
2009
17682
365
12
353
6241746
2010
17886
365
12
353
6313758
2011
18092
365
12
353
6386476
2012
17428
366
12
354
6169512
2013
17628
365
16
349
6152172
4326.4 4499.456 4679.434 4866.612 5061.276 5263.727 5474.276 5693.247 5920.977
1579136 1642301 1707993 1781180 1847366 1921260 1998111 2083728 2161157
300000
60000
60000
60000
60000
350000
60000
70000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
4143664
4143664
3478597
3478597
2902038
2902038
2787094
2787094
2774380
2774380
2772498
2772498
2768365
2768365
2465784
2465784
2361015
2361015
15913.5 16390.91 16882.63 17389.11 17910.78 18448.11 19001.55
19571.6 20158.75
5687751
3716212
5022206
4145155
4389705
4376469
4374049
4369364
3970857
2014
17831
365
16
349
6223019
2015
18036
365
16
349
6294564
2016
18243
366
16
350
6385050
2017
14762
365
16
349
5151938
2018
14932
365
16
349
5211268
2019
15104
365
16
349
5271296
2020
15278
366
16
350
5347300
2021
15454
365
16
349
5393446
2022
14654
365
16
349
5114246
6157.816 6404.129 6660.294 6926.706 7203.774 7491.925 7791.602 8103.266 8427.397
2247603 2337507 2437668 2528248 2629378 2734553 2851726 2957692 3076000
70000
70000
70000
750000
70000
150000
150000
150000
150000
850000
150000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
2345416 2327057 2317382 993690.4 871890.5
820895.6 814469.9 811083.8 347791.6 305161.7
1524520 1512587 1506299 645898.8 566728.8
2345416 2327057 2317382 993690.4 871890.5
826743.4
289360.2
537383.2
826743.4
785573.7 725753.9 328246.2
274950.8 254013.9 114886.2
510622.9
471740
213360
785573.7 725753.9 328246.2
20763.51 21386.41 22028.01 22688.85 23369.51
24070.6 24792.71
25536.5 26302.59
3133757
3121201
3114271
1503210
2253359
2223313
2195830
2156204
1047057
2014
17831
365
16
349
6223019
2015
18036
365
16
349
6294564
2016
18243
366
16
350
6385050
2017
14762
365
16
349
5151938
2018
14932
365
16
349
5211268
2019
15104
365
16
349
5271296
2020
15278
366
16
350
5347300
2021
15454
365
16
349
5393446
2022
14654
365
16
349
5114246
6157.816 6404.129 6660.294 6926.706 7203.774 7491.925 7791.602 8103.266 8427.397
2247603 2337507 2437668 2528248 2629378 2734553 2851726 2957692 3076000
70000
70000
70000
750000
70000
150000
150000
150000
150000
850000
150000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
1560000
2345416
2345416
2327057
2327057
2317382 993690.4 871890.5 826743.4 785573.7 725753.9 328246.2
2317382 993690.4 871890.5 826743.4 785573.7 725753.9 328246.2
20763.51 21386.41 22028.01 22688.85 23369.51
24070.6 24792.71
25536.5 26302.59
3954653
2512673
2410217
3935671
3925354
1851002
2558521
2470781
1161944
2023
14823
365
16
349
5173227
2024
14993
366
16
350
5247550
2025
15166
365
16
349
5292934
2026
15341
365
16
349
5354009
2027
13448
365
16
349
4693352
8764.493 9115.072 9479.675 9858.862 10253.22
3199040 3336116 3460081 3598485 3742424
170000
170000
170000
170000
170000
1560000
1560000
1560000
1560000
1560000
244187.2
85465.52
158721.7
244187.2
181433.5 102852.6 25524.31
63501.74 35998.4 8933.507
117931.8 66854.17 16590.8
181433.5 102852.6 25524.31
-779072
-272675
-506397
-779072
27091.67 27904.42 28741.55
29603.8 30491.91
1861630
1820027
1768113
1716987
1193111
2023
14823
365
16
349
5173227
2024
14993
366
16
350
5247550
2025
15166
365
16
349
5292934
2026
15341
365
16
349
5354009
2027
13448
365
16
349
4693352
8764.493 9115.072 9479.675 9858.862 10253.22
3199040 3336116 3460081 3598485 3742424
170000
170000
170000
170000
170000
1560000
1560000
1560000
1560000
1560000
244187.2 181433.5 102852.6 25524.31
244187.2 181433.5 102852.6 25524.31
-779072
-779072
27091.67 27904.42 28741.55
29603.8 30491.91
1947096
1725921
1883529
1804111
920436
SCENARIO: 15 YEARS USE WITH TAX
2001
revenues
operating cost
PURCHASE
CAPITAL EXP
EBITDA
DEPN OF PURCHASE
DEPN OF CAPITAL EXP
EBIT
-3900000
0
TAX
PAT
NET SALVAGE VALUE
INV IN WORKING CAPITAL
0
0
FCF
-3900000
npv
Exptected Rate of Inflation
Rate of Increase of Operating Costs
Purchase Price
3.00%
4.00%
39000000
Tax Rate
Discount Rate
SCENARIO: 15 YEARS USE WITHOUT TAX
2001
revenues
operating cost
PURCHASE
CAPITAL EXP
EBITDA
DEPN
DEPN OF CAPITAL EXP
EBIT
PAT
NET SALVAGE VALUE
INV IN WORKING CAPITAL
-3900000
FCF
-3900000
Rs. -200,319.06
USE WITH TAX
2002
2003
7140000
2004
2005
2006
2007
2008
2009
7211400 7282800 6680898 6170031 6170793 6241746
-1460000
-1518400 -1579136 -1642301 -1707993 -1776313 -1847366
-3900000 -31200000
0
5680000
2266667
3413333
-300000
5693000 5703664 5038597 4462038 4394480 4394380
2266667 2266667 2266667 2266667 2266667 2266667
60000
60000
3426333 3436997 2771930 2195371 2067813 2067713
0 1194666.6 1199216.6
0 2218666.5 2227116.5
-500000
-15000
-15450
-4400000 -26729667 4478333.5
1202949 970175.3 768379.7 723734.5 723699.6
2234048 1801754 1426991 1344078 1344014
-15913.5 -16390.91 -16882.63 -17389.11 -17910.78
4484802
4052030
3376775
3593356
3592770
Rs. -5,932,339.87
35.00%
9.00%
USE WITHOUT TAX
2002
2003
7140000
2004
2005
2006
2007
2008
2009
7211400 7282800 6680898 6170031 6170793 6241746
-1460000
-1518400 -1579136 -1642301 -1707993 -1776313 -1847366
-3900000 -31200000
3413333
-300000
5693000 5703664 5038597 4462038 4394480 4394380
2266667 2266667 2266667 2266667 2266667 2266667
60000
60000
3426333 3436997 2771930 2195371 2067813 2067713
3413333
3426333
-15000
-15450
5680000
2266667
-500000
3436997
2771930
2195371
2067813
2067713
-15913.5 -16390.91 -16882.63 -17389.11 -17910.78
-4400000 -25535000
5677550
5687751
5022206
4145155
4317091
4316469
2010
2011
2012
2013
2014
2015
2016
2017
6313758 6386476 6152084 6152172 6223019 6294564 6366807 5151938
-1921260 -1998111 -2078035 -2161157 -2247603 -2337507 -2431007 -2528248
-350000
-750000
4392498 4388365 4074049 3991015 3975416 3957057 3935800 2623690
2266667 2266667 2266667 2266667 2266667 2266667 2266667 2266667
60000
60000
60000
70000
70000
70000
70000
70000
2065831 2061698 1747382 1654348 1638749 1620390 1599133 287023.4
723040.7 721594.4 611583.6 579021.9 573562.2 567136.5 559696.4 100458.2
1342790 1340104 1135798 1075326 1065187 1053253 1039436 186565.2
5000000
-18448.11 -19001.55 -19571.6 -20158.75 -20763.51 -21386.41 -22028.01 -22688.85
3591009
3587769
3032894
3321835
3311090
3298534
3284075
1680543
2010
2011
2012
2013
2014
2015
2016
2017
6313758 6386476 6152084 6152172 6223019 6294564 6366807 5151938
-1921260 -1998111 -2078035 -2161157 -2247603 -2337507 -2431007 -2528248
-350000
-750000
4392498 4388365 4074049 3991015 3975416 3957057 3935800 2623690
2266667 2266667 2266667 2266667 2266667 2266667 2266667 2266667
60000
60000
60000
70000
70000
70000
70000
70000
2065831 2061698 1747382 1654348 1638749 1620390 1599133 287023.4
2065831
2061698
-18448.11 -19001.55
1747382
1654348
1638749
1620390
1599133 287023.4
3250000
-19571.6 -20158.75 -20763.51 -21386.41 -22028.01 -22688.85
4314049
4309364
3644477
3900857
3884653
3865671
3843772
1781002
