REVENUES IN YEAR 2012
INITIAL INVESTMENT CASHFLOW DETAILS DISCOUNT RATE
Initial Investment $50 000 Revenues in  year 2012 $40 000 Approach 2
Opportunity cost $7 484 Var. Expenses as % of Rev 50% 1. Discount rate 10%
Lifetime of the investment 10 Fixed expenses in year 2012 0 2a. Beta 0,9
Salvage Value at end of project $10 000 Tax rate on net income 40%   b. Riskless rate 8,00%
Deprec. Method (1:St.line;2:DDB) 2   c. Market risk premium 5,50%
Tax Credit 10%   d. Debt Ratio 30,00%
Other invest. 0   e. Cost of Borrowing 9,00%
Discount rate used 10,69%
WORKING CAPITAL
Initial Investment in Work. Cap $10 000
Working Capital 25%
Salvageable fraction at end 100%
GROWTH RATES
1 2 3 4 5 6 7 8 9 10
Revenues 10,00% 10,00% 8,00% 9,00% 12,00% 12,50% 10,20% 9,50% 12,50%
Fixed Expenses 10,00% 10,00% 8,00% 9,00% 12,00% 12,50% 10,20% 9,50% 12,50%
INITIAL INVESTMENT
Investment $50 000
 - Tax Credit $5 000
Net Investment $45 000
 + Working Cap $10 000
 + Opp. Cost $7 484
 + Other invest. $0
Initial Investment $62 484
YEAR
1 2 3 4 5 6 7 8 9 10
SALVAGE VALUE
Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $10 000
Working Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $24 364
OPERATING CASHFLOWS
Lifetime Index 1 1 1 1 1 1 1 1 1 1
Revenues $40 000 $44 000 $48 400 $52 272 $56 976 $63 814 $71 790 $79 113 $86 629 $97 457
 -Var. Expenses $20 000 $22 000 $24 200 $26 136 $28 488 $31 907 $35 895 $39 556 $43 314 $48 729
 - Fixed Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
EBITDA $20 000 $22 000 $24 200 $26 136 $28 488 $31 907 $35 895 $39 556 $43 314 $48 729
 - Depreciation $10 000 $8 000 $6 400 $5 120 $4 096 $3 277 $2 621 $486 $0 $0
EBIT $10 000 $14 000 $17 800 $21 016 $24 392 $28 630 $33 274 $39 071 $43 314 $48 729
 -Tax $4 000 $5 600 $7 120 $8 406 $9 757 $11 452 $13 309 $15 628 $17 326 $19 491
EBIT(1-t) $6 000 $8 400 $10 680 $12 610 $14 635 $17 178 $19 964 $23 442 $25 989 $29 237
 + Depreciation $10 000 $8 000 $6 400 $5 120 $4 096 $3 277 $2 621 $486 $0 $0
 - ∂ Work. Cap $0 $1 000 $1 100 $968 $1 176 $1 709 $1 994 $1 831 $1 879 $2 707
NATCF $16 000 $15 400 $15 980 $16 762 $17 555 $18 746 $20 592 $22 098 $24 110 $26 530
Discount Factor 1,10685 1,225116923 1,356020666 1,500911474 1,661283865 1,838792046 2,035266976 2,252735252 2,493440014 2,759864079
Discounted CF $14 455 $12 570 $11 784 $11 168 $10 567 $10 194 $10 117 $9 809 $9 669 $22 064
INVESTMENT MEASURES
NPV $122 400
IRR #NUM!
ROC 94,43%
BOOK VALUE & DEPRECIATION
Book Value (beginning) $50 000 $40 000 $32 000 $25 600 $20 480 $16 384 $13 107 $10 486 $10 000 $10 000
Depreciation $10 000 $8 000 $6 400 $5 120 $4 096 $3 277 $2 621 $486 $0 $0
BV(ending) $40 000 $32 000 $25 600 $20 480 $16 384 $13 107 $10 486 $10 000 $10 000 $10 000