1 Year 2 Equipment Cost 3 Net Revenues 4 Less: Labor 5 Utilities 6 Supplies 7 Incremental OH 8 Depreciation 9 Operating Income 10 Taxes 11 Net Operating income 12 Add:Depreciation 13 Add:Equipment Salvage Value 14 Net Cash Flow 15 NPV 16 IRR 17 18 Pretax Salvage Value 19 Book Value: 20 Cost 21 Less:Accumulated Dep 22 Profit on Sale 23 Tax on Sale 24 Cash From Sale(Salvage - Tax) A 0 -600000 B C D E F G 1 2 3 4 5 |=15*250*80 |=+C3*1.05 |=+D3*1.05 =+E3*1.05 |=+F3*1.05 100000 |=+C4*1.05 =+D4*1.05 =+E4*1.05 10000 |=+C5*1.05 |=+D5*1.05 |=+E5*1.05 =+F4*1.05 |=+F5 1.05 =15*250*5 =+C6*1.05 |=+D6*1.05 |=+E6*1.05 5000 |=+C7*1.05 |=+D7*1.05 |=+E7*1.05 =-$B$2*0.2 =-$B$2*0.32 =-$B$2*0.19 =-$B$2*0.12 |=+C3-SUM(C4:C8) =+D9*0.4 +D3-SUM(D4:D8) |=+C9*0.4 |=+C9-C10 |=+D9-D10 |=+C8 |=+D8 |=+E9*0.4 =+E3-SUM(E4:E8) +F3-SUM(F4:F8) |=+F9*0.4 =+F6*1.05 |=+F7*1.05 =-$B$2*0.11 |=+G3-SUM(G4:G8) =+G9*0.4 |=+E9-E10 |=+E8 |=+F9-F10 =+F8 |=+G9-G10 |=+G8 =+B2 |=+C11+C12+C13 |=+NPV(10%,C14:G14)+B14 =+IRR(B14:G14) 200000 =-B2 =+SUM(C8:G8) |=+B20-B21 |=+C18-C21 =+C220.4 |=+C18-C23 |=+D11+D12+D13 |=+E11+E12+E13 |=+F11+F12+F13 =+C24 =+G11+G12+G13 Year Equipment Cost Net Revenues Less: Labor Utilities Supplies Incremental OH Depreciation Operating Income Taxes Net Operating income Add:Depreciation Add:Equipment Salvage Value Net Cash Flow NPV IRR 0 1 2 3 4 5 -600000 300000 315000 100000 105000 110250 115762.5 121550.6 10500 11025 11576.25 12155.06 330750 347287.5 364651.9 10000 18750 19687.5 20671.88 21705.47 22790.74 5000 120000 5250 5512.5 5788.125 6077.531 192000 114000 72000 66000 46250 -17437.5 69290.63 120455.2 136077.9 18500 27750 -10462.5 41574.38 72273.09 120000 192000 114000 -6975 27716.25 48182.06 54431.17 81646.75 72000 66000 134400 -600000 147750 181537.5 155574.4 144273.1 282046.7 74903.81 14.40% Pretax Salvage Value 200000 Book Value: Cost 600000 Less:Accumulated Dep 564000 36000 Profit on Sale 164000 Tax on Sale 65600 Cash From Sale(Salvage - Tax) 134400