Total Intial Investment
Initial increase in working capital
Released working capital at the end of the project
Depreciation
Investment Allowance
Increase in Cash Revenue
Increase in Cash Operating Expenses
Taxable Profit
Tax Paid
After-tax Profit
Annual Cash Flow
Repairs cost
Terminal Value:
Recovered Working Capital
Taxable Profit
Tax Paid
After-tax Profit
Annual Cash Flow
$ 3,000,000 Year
$ 72,000 1
$ 58,000 2
$ 475,000 3
$ 450,000 4
$ 760,000 5
$ 174,000 Year 1 6
$ 111,000 $ 611,000 0
$ 33,300 $ 183,300 NPV
$ 77,700 $ 427,700
$ 552,700 $ 902,700
$ 87,000 (added in Year 3)
$ 150,000
$ 58,000
$ 24,000
$ 7,200
$ 16,800
$ 491,800
Cash Flows
$ 805,982
$ 799,346
$ 350,054
$ 351,251
$ 313,617
$ 385,394
$ (3,000,000)
$ (66,356)
0%
Cost of the tourist health spa and resort $ 2,500,000.00
Depreciation $ 380,000.00
Terminal Value $ 600,000.00
Year Revenue
1 $ 2,000,000.00
2 $ 2,000,000.00
3 $ 2,500,000.00
4 $ 2,500,000.00
5 $ 2,500,000.00
Operating Cost Promotion Costs Taxable Profit Tax After-Tax Profit
$ 1,300,000.00 $ 250,000.00 $ 70,000.00 $ 21,000.00 $ 49,000.00
$ 1,100,000.00 $ 150,000.00 $ 370,000.00 $ 111,000.00 $ 259,000.00
$ 1,100,000.00 $ 150,000.00 $ 870,000.00 $ 261,000.00 $ 609,000.00
$ 1,100,000.00 $ 150,000.00 $ 870,000.00 $ 261,000.00 $ 609,000.00
$ 1,100,000.00 $ 150,000.00 $ 870,000.00 $ 261,000.00 $ 609,000.00
Cash Flow PV OC
$ 429,000.00 $ 258,333.33 150000
$ 639,000.00 $ 419,238.68 150000
$ 989,000.00 $ 666,025.25 150000
$ 989,000.00 $ 579,938.55 200000
$ 1,589,000.00 $ 945,330.06 200000
$ (2,500,000.00) $ (2,500,000.00)
NPV $ 368,865.88
