Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    Discounted Cash Flow Calculation

    Uploaded by

    clarence
    The document calculates the discounted cash flow for a production asset over 20 years. It shows the capital expenditure in year 0, depreciation and taxable income each year, and the net income after tax. The internal rate of return is -40% and the net present value is negative R127,363 using a discount rate of 14.2%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Discounted Cash Flow Calculation

    Uploaded by

    clarence
    6 views2 pages
    The document calculates the discounted cash flow for a production asset over 20 years. It shows the capital expenditure in year 0, depreciation and taxable income each year, and the net income after tax. The internal rate of return is -40% and the net present value is negative R127,363 using a discount rate of 14.2%.

    Original Title

    Dcf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document calculates the discounted cash flow for a production asset over 20 years. It shows the capital expenditure in year 0, depreciation and taxable income each year, and the net income after tax. The internal rate of return is -40% and the net present value is negative R127,363 using a discount rate of 14.2%.

    Copyright:

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

    Discounted Cash Flow Calculation

    Uploaded by

    clarence
    The document calculates the discounted cash flow for a production asset over 20 years. It shows the capital expenditure in year 0, depreciation and taxable income each year, and the net income after tax. The internal rate of return is -40% and the net present value is negative R127,363 using a discount rate of 14.2%.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    DISCOUNTED CASH FLOW CALCULATION

    Type of Asset Production Assets

    6 Years 6 6 TRUE
    INCOME BEFORE TAX INCOME
    YEAR CAPEX Re-Sale/Sale SAVINGS TAX DEPRECIATION Recoupment TAXABLE TAX '27% AFTER TAX

    0 -160 000 -160 000


    1 - - - 64 000.0 - -64 000.0 -17 280.0 17 280
    2 - - - 32 000.0 - -32 000.0 -8 640.0 8 640
    3 - - - 32 000.0 - -32 000.0 -8 640.0 8 640
    4 - - - 32 000.0 - -32 000.0 -8 640.0 8 640
    5 - - - - - - - -
    6 - - - - - - -
    7 - - - - - - -
    8 - - - - - - -
    9 - - - - - - -
    10 - - - - - - -
    11 - - - - - - -
    12 - - - - - - -
    13 - - - - - - -
    14 - - - - - - -
    15 - - - - - - -
    16 - - - - - - -
    17 - - - - - - -
    18 - - - - - - -
    19 - - - - - - -
    20 - - - - - - -
    -116 800.0
    IRR: -40%
    NPV: R -127 363
    Discount rate (WACC) 14.20%

    Adjust Tax Depreciation as follows: Year 1 Year 2 Year 3 Year 4 Year 5


    DISCOUNTED CASH FLOW CALCULATION
    1. Mining Asset (All assets at Idwala Lime) 100% 0% 0% 0% 0%
    2. Production Assets 40% 20% 20% 20% 0%
    3. Delivery Vehicles 25% 25% 25% 25% 0%
    4. IT Assets 33% 33% 33% 0% 0%
    5. Other assets 20% 20% 20% 20% 20%

    You might also like