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Advisory Finance Week 11

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atilatoplane
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19 views

Advisory Finance Week 11

Uploaded by

atilatoplane
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
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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

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