Scribd
Upload
36 views

Initial Cash Flows Terminal Cash Flows

This document summarizes the cash flow projections for a new building project over several years. It shows initial investments totaling $26.1 million for land, building construction, equipment, and net working capital. Annual cash flows are projected from operations and include revenues from unit sales, costs of goods sold, fixed costs, depreciation, taxes, and changes in net working capital. Terminal cash flows of $4.5 million are projected for the final year after operations cease.

Uploaded by

hannah
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
36 views

Initial Cash Flows Terminal Cash Flows

This document summarizes the cash flow projections for a new building project over several years. It shows initial investments totaling $26.1 million for land, building construction, equipment, and net working capital. Annual cash flows are projected from operations and include revenues from unit sales, costs of goods sold, fixed costs, depreciation, taxes, and changes in net working capital. Terminal cash flows of $4.5 million are projected for the final year after operations cease.

Uploaded by

hannah
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/ 5

Initial Cash flows Terminal Cash Flows

Tract for Building 1,491,870


Building (1st Payment) 4,000,000
Building (2nd Payment) 4,000,000
Equipment 10,000,000
NWC 6,600,000
Total Initial Investment 26,091,870

Units Sold 25,000 25,000 25,000 25,000


Price 2,200 2,332 2,472 2,620
Sales Revenues 55,000,000 58,300,000 61,798,000 65,505,880
Variable Cost 35,750,000 37,895,000 40,168,700 42,578,822
Fixed cost 8,000,000 8,480,000 8,988,800 9,528,128
Total Cost 43,750,000 46,375,000 49,157,500 52,106,950
Depreciation (building) 120,000 240,000 240,000 240,000
Depreciation (Equipment) 2,000,000 3,200,000 1,920,000 1,152,000
Operating Profit 9,130,000 8,485,000 10,480,500 12,006,930

ANWC - 396,000 419,760 444,945.60


al Cash Flows

25,000 25,000
2,777 2,944
69,436,233 73,602,407
45,133,551 47,841,564
10,099,816 10,705,805
55,233,367 58,547,369
240,000 240,000
1,152,000 576,000
12,810,866 14,239,038

471,642 499,941 -
Inflation Rate 6%
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007
Tract for Building 1,200,000 1,500,000
Building (1st Payment) 4,000,000
Building (2nd Payment) 4,000,000 1,000,000
Equipment 10,000,000 2,000,000
NWC 6,600,000
Total 1,200,000 4,000,000 20,600,000 - - - - - -
Terminal Cash Flow 4,500,000
Units Sold 25,000 25,000 25,000 25,000 25,000 25,000
Price 2,200 2,332 2,472 2,620 2,777 2,944
Sales Revenues 55,000,000 58,300,000 61,798,000 65,505,880 69,436,233 73,602,407
Variable Cost 35,750,000 37,895,000 40,168,700 42,578,822 45,133,551 47,841,564
Fixed cost 8,000,000 8,480,000 8,988,800 9,528,128 10,099,816 10,705,805
Total Cost 43,750,000 46,375,000 49,157,500 52,106,950 55,233,367 58,547,369
Depreciation (building) 120,000 240,000 240,000 240,000 240,000 240,000
Depreciation (Equipment) 2,000,000 3,200,000 1,900,000 1,900,000 1,200,000 500,000
EBIT 9,130,000 8,485,000 10,500,500 11,258,930 12,762,866 14,315,038
Tax Rate 40% 40% 40% 40% 40% 40%
EBIT(1-T) 5,478,000 5,091,000 6,300,300 6,755,358 7,657,719 8,589,023
Add: Total depreciation 2,120,000 3,440,000 2,140,000 2,140,000 1,440,000 740,000

OCF 7,598,000 8,531,000 8,440,300 8,895,358 9,097,719 9,329,023


NWC 6,600,000 6,996,000 7,415,760 7,860,706 8,332,348 -
Difference in NWC - 396,000 419,760 444,946 471,642 (8,832,289)
Terminal Cash Flow 4,500,000

Cash Flows (1,200,000) (4,000,000) (20,600,000) 7,598,000 8,135,000 8,020,540 8,450,412 8,626,077 22,661,311
Initial Cash flows
Tract for Building 1,491,870
Building (1st Payment) 4,000,000
Building (2nd Payment) 4,000,000
Equipment 10,000,000
NWC 6,600,000
Total Initial Investment 26,091,870

You might also like