Management Finance Project
JamesTheGreat 
Chapter10-Example.xlsxShark Attractant - No Tax
| Oerpating Cash Flw | ||||
| Year | 0 | 1 | 2 | 3 |
| Sales | $ 215,000.00 | $ 215,000.00 | $ 215,000.00 | |
| Costs | ||||
| Variable | $ 125,000.00 | $ 125,000.00 | $ 125,000.00 | |
| Fixed | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | |
| Total Costs | $ 137,000.00 | $ 137,000.00 | $ 137,000.00 | |
| Depreciation | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | |
| EBIT | $ 48,000.00 | $ 48,000.00 | $ 48,000.00 | |
| Taxes | $ - 0 | $ - 0 | $ - 0 | |
| Net Income | (profit) | $ 48,000.00 | $ 48,000.00 | $ 48,000.00 |
| OCF | $ 78,000.00 | $ 78,000.00 | $ 78,000.00 | |
| (NI+Depreciation-Taxes) | ||||
| Change in NWC | -20000 | $ - 0 | $ - 0 | $ 20,000.00 |
| Capital Spending | -90000 | $ - 0 | $ - 0 | $ - 0 |
| Project Cash Flows | ||||
| OCF | $ - 0 | $ 78,000.00 | $ 78,000.00 | $ 78,000.00 |
| Change NWC | -20000 | 0 | 0 | 20000 |
| Capital Spending | -90000 | 0 | 0 | 0 |
| PCF | -$ 110,000.00 | $ 78,000.00 | $ 78,000.00 | $ 98,000.00 |
| DCF | -$ 110,000.00 | $ 65,000.00 | $ 54,166.67 | $ 56,712.96 |
| Cumulative CF | -$ 110,000.00 | -$ 32,000.00 | $ 46,000.00 | $ 144,000.00 |
| D Cumulative CF | -$ 110,000.00 | -$ 45,000.00 | $ 9,166.67 | $ 65,879.63 |
| NPV (Sum) | $ 65,879.63 | |||
| NPV (Formula) | $65,879.63 | |||
| IRR | 54% | |||
| PI | 1.60 |
Shark Attractant - Tax
| Shark Attractant with Taxes | ||||
| Inputs | CCA | 30% | ||
| Investment | $ 90,000.00 | |||
| Tax | 40% | |||
| Year | 0 | 1 | 2 | 3 |
| Depreciation | ||||
| Beg UCC | $ 90,000.00 | $ 60,000.00 | $ 30,000.00 | |
| Depreciation | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | |
| End UCC | $ 60,000.00 | $ 30,000.00 | $ - 0 | |
| Year | 0 | 1 | 2 | 3 |
| Sales | $ 215,000.00 | $ 215,000.00 | $ 215,000.00 | |
| Costs | ||||
| Variable | $ 125,000.00 | $ 125,000.00 | $ 125,000.00 | |
| Fixed | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | |
| Total Costs | $ 137,000.00 | $ 137,000.00 | $ 137,000.00 | |
| Depreciation | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | |
| EBIT | $ 48,000.00 | $ 48,000.00 | $ 48,000.00 | |
| Taxes | $ 19,200.00 | $ 19,200.00 | $ 19,200.00 | |
| Net Income | (profit) | $ 28,800.00 | $ 28,800.00 | $ 28,800.00 |
| OCF | $ 58,800.00 | $ 58,800.00 | $ 58,800.00 | |
| (NI+Depreciation-Taxes) | ||||
| Change in NWC | -20000 | $ - 0 | $ - 0 | $ 20,000.00 |
| Capital Spending | -90000 | $ - 0 | $ - 0 | $ - 0 |
| Project Cash Flows | ||||
| OCF | $ - 0 | $ 58,800.00 | $ 58,800.00 | $ 58,800.00 |
| Change NWC | -20000 | 0 | 0 | 20000 |
| Capital Spending | -90000 | 0 | 0 | 0 |
| PCF | -$ 110,000.00 | $ 58,800.00 | $ 58,800.00 | $ 78,800.00 |
| DCF | -$ 110,000.00 | $ 49,000.00 | $ 40,833.33 | $ 45,601.85 |
| Cumulative CF | -$ 110,000.00 | -$ 51,200.00 | $ 7,600.00 | $ 86,400.00 |
| D Cumulative CF | -$ 110,000.00 | -$ 61,000.00 | -$ 20,166.67 | $ 25,435.19 |
| NPV (Sum) | $ 25,435.19 | |||
| NPV (Formula) | $25,435.19 | |||
| IRR | 34% | |||
| PI | 1.23 |
Shark Attractant - Tax (2)
| Shark Attractant with Taxes | ||||
| Inputs | CCA | 30% | ||
| Investment | $ 90,000.00 | |||
| Tax | 35% | |||
| Year | 0 | 1 | 2 | 3 |
| Depreciation | ||||
| Beg UCC | $ 90,000.00 | $ 60,000.00 | $ 30,000.00 | |
| Depreciation | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | |
| End UCC | $ 60,000.00 | $ 30,000.00 | $ - 0 | |
| Year | 0 | 1 | 2 | 3 |
| Sales | $ 215,000.00 | $ 215,000.00 | $ 215,000.00 | |
| Costs | ||||
| Variable | $ 125,000.00 | $ 125,000.00 | $ 125,000.00 | |
| Fixed | $ 12,000.00 | $ 12,000.00 | $ 12,000.00 | |
| Total Costs | $ 137,000.00 | $ 137,000.00 | $ 137,000.00 | |
| Depreciation | $ 30,000.00 | $ 30,000.00 | $ 30,000.00 | |
| EBIT | $ 48,000.00 | $ 48,000.00 | $ 48,000.00 | |
| Taxes | $ 16,800.00 | $ 16,800.00 | $ 16,800.00 | |
| Net Income | (profit) | $ 31,200.00 | $ 31,200.00 | $ 31,200.00 |
| OCF | $ 61,200.00 | $ 61,200.00 | $ 61,200.00 | |
| (NI+Depreciation-Taxes) | ||||
| Change in NWC | -20000 | $ - 0 | $ - 0 | $ 20,000.00 |
| Capital Spending | -90000 | $ - 0 | $ - 0 | $ - 0 |
| Project Cash Flows | ||||
| OCF | $ - 0 | $ 61,200.00 | $ 61,200.00 | $ 61,200.00 |
| Change NWC | -20000 | 0 | 0 | 20000 |
| Capital Spending | -90000 | 0 | 0 | 0 |
| PCF | -$ 110,000.00 | $ 61,200.00 | $ 61,200.00 | $ 81,200.00 |
| DCF | -$ 110,000.00 | $ 51,000.00 | $ 42,500.00 | $ 46,990.74 |
| Cumulative CF | -$ 110,000.00 | -$ 48,800.00 | $ 12,400.00 | $ 93,600.00 |
| D Cumulative CF | -$ 110,000.00 | -$ 59,000.00 | -$ 16,500.00 | $ 30,490.74 |
| NPV (Sum) | $ 30,490.74 | |||
| NPV (Formula) | $30,490.74 | |||
| IRR | 36% | |||
| PI | 1.28 |
Majestic Mulch
| Majestic Mulch |
| Input |
