Finance Assignment
Sheet1
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 |
| Cash Inflows/Outflows | -$1,000,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
| Depreciation | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | |
| Income Before Taxes | -$1,000,000 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 | $66,667 |
| Taxes | -$400,000.00 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 | $26,666.70 |
| After Tax Net Income | -$600,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 |
| Depreciation | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | $33,333.33 | |
| After Tax Cash Flows | -$600,000.00 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 | $73,333.30 |
| Discount Rate Using 10% WACC | 1 | 0.9091 | 0.8264 | 0.7513 | 0.683 | 0.6209 | 0.5645 | 0.5132 | 0.4665 | 0.4241 | 0.3855 | 0.3505 | 0.3186 | 0.2897 | 0.2633 | 0.2394 | 0.2176 | 0.1978 | 0.1799 | 0.1635 | 0.1486 | 0.1351 | 0.1228 | 0.1117 | 0.1015 | 0.0923 | 0.0839 | 0.0763 | 0.0693 | 0.063 | 0.0573 |
| PV of Cash Flows | -$600,000.00 | $66,666.70 | $60,606.10 | $55,096.40 | $50,087.70 | $45,534.20 | $41,394.80 | $37,631.60 | $34,210.50 | $31,100.50 | $28,273.20 | $25,702.90 | $23,366.30 | $21,242.10 | $19,311.00 | $17,555.40 | $15,959.50 | $14,508.60 | $13,189.60 | $11,990.60 | $10,900.50 | $9,909.60 | $9,008.70 | $8,189.70 | $7,445.20 | $6,768.40 | $6,153.10 | $5,593.70 | $5,085.20 | $4,622.90 | $4,202.60 |
| Total Present Value | $91,307.06 |