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