Scribd
Upload
56 views

Group Project 1 Student Template

This document calculates the net present value of purchasing a new machine called DELTA by analyzing cash flows over 5 years. It outlines tax calculations considering repair, maintenance, and depreciation costs of the old and new machines. Cash flows are discounted using the cost of capital to determine the net present value.

Uploaded by

L S
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
56 views

Group Project 1 Student Template

This document calculates the net present value of purchasing a new machine called DELTA by analyzing cash flows over 5 years. It outlines tax calculations considering repair, maintenance, and depreciation costs of the old and new machines. Cash flows are discounted using the cost of capital to determine the net present value.

Uploaded by

L S
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

NPV of purchasing DELTA

Calculation of Tax 0 1 2 3 4
Repair costs saved (old)
Maintenance saved (old)
Major service saved (old)
Labour saving (new)
Electricity saving (new)
Maintenance (new)
Depreciation foregone (old)
Depreciation (new)
Profit/Loss on sale (new)
Taxable Income
Tax payable (saving)

Cash Flows
Sale of MATRIX
Cost of DELTA
Scrap foregone (old)
Repair costs saved (old)
Maintenance saved (old)
Major service saved (old)
Scrap (new)
Labour saving (new)
Electricity saving (new)
Maintenance (new)
LESS Tax
CASH FLOWS
Discount factors at cost of capital
Discounted Cash Flows (DCF)

Net Present Value


5
NPV of purchasing DELTA

Calculation of Tax 0 1 2 3 4
Repair costs saved (old)
Maintenance saved (old)
Major service saved (old)
Labour saving (new)
Electricity saving (new)
Maintenance (new)
Depreciation foregone (old)
Depreciation (new)
Profit/Loss on sale (new)
Taxable Income
Tax payable (saving)

Cash Flows
Sale of MATRIX
Cost of DELTA
Scrap foregone (old)
Repair costs saved (old)
Maintenance saved (old)
Major service saved (old)
Scrap (new)
Labour saving (new)
Electricity saving (new)
Maintenance (new)
LESS Tax
CASH FLOWS
Discount factors at cost of capital
Discounted Cash Flows (DCF)

Net Present Value


5

You might also like