3 4 Input Area 5 Cost of Capital 6 Existing volume 200,000 Year 1 incremental volume Growth -5.0% 9 Revenue per case 20.00 10 COGS - New 11.00 11 COGS - Old 10.00 12 Tax 20% 13 NWC 6% 14 Asset purchase $ 135,000 15 16 17 18 Year 0 1 IN 19 20 Incremental Cases 21 22 Incremental Revenue 23 COGS on Incremental Cases 24 Incremental COGS on existing cases 25 Incremental Gross Margin 26 Fixed Expenses 27 Depreciation 28 EBT 29 Tax 30 Earnings After Tax 31 Addback Depreciation Operating Cash Flow 33 34 Cash Flow Table 35 Operating Cash Flow (from above) 0 0 0 0 36 Asset Purchase NWC sset Sale 39 Tax on Asset Sale 40 Free Cash Flow 4138 Asset Sale 39 Tax on Asset Sale 40 Free Cash Flow 41 42 Discount Factor (or use NPV function) 1 43 44 Discounted Cash Flow 45 46 NPV 47 IRR 48 49 Decision: 50 51 52 Supplemental Work Area (if needed) 53 Year 0 1 2 3 54 Investment 55 Beginning Book Value 135000 45000 45000 45000 56 Depreciation 57 Ending Book Value 58 59 60 61 Gain or Loss on Asset Sale at End Year 0 1 2 3 62 63 64 65 66 67 68 Working Capital Needs Year 0 1 2 3 NWC 70 Change in NWC 71 CF Impact 72 73 74 75 76