Week 5 assignment

cb-case-template.xls

Sheet1

Capital Budgeting Mini Case Template
CORPORATION A
YEAR	0	1	2	3	4	5
Revenues		100.00	110.00	121.00	133.10	146.41
Expenses		20.00	23.00	26.45	30.42	34.98
Dep.		5.00	5.00	5.00	5.00	5.00
EBIT		75.00	82.00	89.55	97.68	106.43
Tax		18.75	20.50	22.39	24.42	26.61
Net Income		56.25	61.50	67.16	73.26	79.82
Add:
Depreciation		5.00	5.00	5.00	5.00	5.00
CASH FLOW	(250.00)	61.25	66.50	72.16	78.26	84.82
Discount rate =	10.00%
				In this template your are to ONLY fill in the yellow highlighted area with the correct calculation/formula.
NPV					….save and submit as your individual assignment
IRR
PB		years			Note -- the green area is not required, but you can make the attempt if you so choose
PI					this will required outside the text research.
DPB		years
MIRR
PV		(55.68)	(54.96)	(54.22)	(53.45)	(52.67)	(270.98)
FV		(89.68)	(88.51)	(87.32)	(86.09)	(84.82)	(436.41)
CORPORATION B
YEAR	0	1	2	3	4	5
Revenues		150.00	162.00	174.96	188.96	204.07
Expenses		60.00	66.00	72.60	79.86	87.85
Dep.		10.00	10.00	10.00	10.00	10.00
EBIT		80.00	86.00	92.36	99.10	106.23
Tax		20.00	21.50	23.09	24.77	26.56
Net Income		60.00	64.50	69.27	74.32	79.67
Add:
Depreciation		10.00	10.00	10.00	10.00	10.00
CASH FLOW	(250.00)	70.00	74.50	79.27	84.32	89.67
Discount rate =	11.00%
				In this template your are to ONLY fill in the yellow highlighted area with the correct calculation/formula.
NPV				….save and submit as your individual assignment
IRR
PB		years		Note -- the green area is not required, but you can make the attempt if you so choose
PI				this will required outside the text research.
DPB		years
MIRR
PV		(63.06)	(60.47)	(57.96)	(55.55)	(53.22)	(290.25)
FV		(106.26)	(101.89)	(97.67)	(93.60)	(89.67)	(489.09)