Lab 221 HS10002
Lab 221 HS10002
Lab 221 HS10002
Year 1 2 3 4
Incremental Sales (Inflows) 1000000 10% 10% 10%
1000000 1100000 1210000 1331000
Variable Cost (50% of incremental sales) 500000 550000 605000 665500
Fixed Costs 150000 150000 150000 150000
Depreciation 200000 200000 200000 200000
Tax Rate 40%
Salvage Vaue 250000
Recovery of the Working Capital 100000
Cost of Capital 12%
Life 5
Estimated Cash flow from Project Year
0 1 2 3
Sales Revnue 1000000 1100000 1210000
Less Cash Operating Expenses: 1 Variable Cost 500000 550000 605000
Less Cash Operating Expenses: 1 Fixed Cost 150000 150000 150000
EBITDA 350000 400000 455000
Less: Deprciation and Amortization 200000 200000 200000
EBIT 150000 200000 255000
Less: Income Tax 60000 80000 102000
EAT 90000 120000 153000
Plus: Depreciation and Amortization 200000 200000 200000
net: Cashflow from Operations 290000 320000 353000
Less: Capital Expenditures 1000000 0 0 0
Less: Additions to Working Capital 0 0 0 0
FCF -1000000 290000 320000 353000
IRR
Year Cash Flow ₹ 454,852.26
0 -1000000
1 290000
2 320000
3 353000
4 389300
5 779230
IRR of the Project 26% 26%
5
10%
1464100
732050
150000
200000
4 5
1331000 1464100
665500 732050
150000 150000
515500 582050
200000 200000
315500 382050
126200 152820
189300 229230
200000 200000
389300 429230
0 250000
0 100000
389300 779230
4 5
389300 779230
Initial Investment 1000000
Year 1 2 3 4
Incremental Sales (Inflows) 1000000 10% 10% 10%
1000000 1100000 1210000 1331000
Variable Cost (50% of incremental sales) 500000 550000 605000 665500
Fixed Costs 150000 150000 150000 150000
Depreciation 200000 200000 200000 200000
Tax Rate 40%
Salvage Vaue 250000
Recovery of the Working Capital 100000
Cost of Capital 12%
Life 5
Estimated Cash flow from Project Year
0 1 2 3
Sales Revnue 1000000 1100000 1210000
Less Cash Operating Expenses: 1 Variable Cost 500000 550000 605000
Less Cash Operating Expenses: 1 Fixed Cost 150000 150000 150000
EBITDA 350000 400000 455000
Less: Deprciation and Amortization 200000 200000 200000
EBIT 150000 200000 255000
Less: Income Tax 60000 80000 102000
EAT 90000 120000 153000
Plus: Depreciation and Amortization 200000 200000 200000
net: Cashflow from Operations 290000 320000 353000
Less: Capital Expenditures 1000000 0 0 0
Less: Additions to Working Capital 0 0 0 0
FCF -1000000 290000 320000 353000
IRR
Year Cash Flow ₹ 454,852.26
0 -1000000
1 290000
2 320000
3 353000
4 389300
5 779230
IRR of the Project 26% 26%
5
10%
1464100
732050
150000
200000
4 5
1331000 1464100
665500 732050
150000 150000
515500 582050
200000 200000
315500 382050
126200 152820
189300 229230
200000 200000
389300 429230
0 -250000
0 -100000
389300 779230
4 5
389300 779230
Initial Investment $10000000
Year 1 2 3 4
Incremental Sales (Inflows) 14100000 14100000 14100000 14100000
IRR
Year Cash Flow
0 -11000000
1 4248000
2 4248000
3 4248000
4 4248000
5 4248000
6 4248000
7 4248000
8 4248000
9 4248000
10 4248000
IRR of the Project 37%
5 6 7 8 9 10
14100000 14100000 14100000 14100000 14100000 14100000
4 5 6 7 8 9 10
14100000 14100000 14100000 14100000 14100000 14100000 14100000
8460000 8460000 8460000 8460000 8460000 8460000 8460000
0 0 0 0 0 0 0
5640000 5640000 5640000 5640000 5640000 5640000 5640000
1000000 1000000 1000000 1000000 1000000 1000000 1000000
4640000 4640000 4640000 4640000 4640000 4640000 4640000
1392000 1392000 1392000 1392000 1392000 1392000 1392000
3248000 3248000 3248000 3248000 3248000 3248000 3248000
1000000 1000000 1000000 1000000 1000000 1000000 1000000
4248000 4248000 4248000 4248000 4248000 4248000 4248000
0 0 0 0 0 0 0
0 0 0 0 0 0 -1000000
4248000 4248000 4248000 4248000 4248000 4248000 5248000
4 5 6 7 8 9 10
4248000 4248000 4248000 4248000 4248000 4248000 5248000
Opportunity Cost of Capital 10%
Unit Sales 10000
Price 25
Unit Variable Cost (VC) 16
Fixed Cost (FC) 35000
Initial Investment 40000
D&A 10000
Annual cap exp 8000
Add WC 2000
Tax 35%
Year 0 1 2 3 4
Revenue 250000 250000 250000 250000
Less: VC 160000 160000 160000 160000
Less: FC 35000 35000 35000 35000
EBITDA 55000 55000 55000 55000
Less: D&A 10000 10000 10000 10000
EBIT 45000 45000 45000 45000
Less: Tax 15750 15750 15750 15750
NOPAT 29250 29250 29250 29250
Add: D&A 10000 10000 10000 10000
CF Open 39250 39250 39250 39250
Less: Cap Exp -40000 8000 8000 8000 8000
Less: Add WC 2000 2000 2000 2000
FCF -40000 29250 29250 29250 29250