| | | Capital Budgeting Model |
| | | | Assumptions | | | 2004 | 2003 | | | Percentage of sales 2004 |
| | | | | Growth in Sales |
| | | | | Stores |
| | | | | Sales | | | | | | | | NPV |
| | | | | CGS | | | | | | | | PV Inflows |
| | | | | Gross Profit | | | | | | | | PV Outflows |
| | | | | Expenses |
| | | | | | SG&A |
| | | | | | Store Opening Costs |
| | | | | | Depreciation |
| | | | | | Interest |
| | | | | | Total Expenses |
| | | | | Pre-Tax Earnings |
| | | | | Tax |
| | | | | Earnings from continuing ops |
| | | | | Discontinued ops |
| | | | | Net Income |
| | | | | Estimated cost for one store |
| | | | | Net working capital for one store |
| | | | | | Total cost for one store |
| | | | | LT Growth assumption | | 2% |
| | | | | WACC | | 9.50% |
| | | Estimation of Cash Flows |
| | | | | | | 2005 | 2006 | 2007 | 2008 | 2009 |
| | | | | | Sales |
| | | | | | CGS |
| | | | | | SG&A |
| | | | | | Depreciation |
| | | | | | OCF |
| | | | | | Additional Cap |
| | | | | | NWC |
| | | | | | Additional NWC |
| | | | | | FCF |
| | | | | | | | | | | V2009 |
| | | Develop WACC |
| | | | | 0.095 |
| | | Valuation of Cash Flows |
| | | | | | | 2005 | 2006 | 2007 | 2008 | 2009 |
| | | | | Present Value of Inflows |
| | | | | Present Value of Outflows |
| | | | | NPV |
swapma
week5capitalbudgetingforLowes2011-2012.xlsx
